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Citing a Challenging Market, British Steel Prepares to End Primary Steelmaking in U.K.
03/27/2025 - British Steel plans to shutters its two blast furnaces and steelmaking operations in England, citing tariffs, challenging market conditions and higher environmental costs.
The company said Thursday it would immediately open a discussion with workers on its plan while continuing to work with the U.K. government to explore options for the future of the business.
The company has been seeking government support for installation of two new electric arc furnaces (EAFs). However, following many months of negotiations, no agreement has been reached, the company said.
The closures affect between 2,000 and 2,700 workers and would end 160 years of steelmaking in Scunthorpe, England. The Scunthorpe furnaces are the U.K.’s last two operating blast furnaces.
“We understand this is an extremely difficult day for our staff, their families, and everyone associated with British Steel. But we believe this is a necessary decision given the hugely challenging circumstances the business faces,” said British Steel chief executive officer Zengwei An.
“We remain committed to engaging with our workforce and unions, as well as our suppliers and customers during this time.”
The (London) Telegraph reported that the announcement came after British Steel, which is owned by China’s Jingye Group, rejected a GBP500 million offer from the U.K. government to help fund a process conversion. British Steel’s owner had been seeking GBP1 billion for the project, The Telegraph said.
UK Steel director general Gareth Stace said the announcement is a “heartbreaking and pivotal moment” for the U.K. steel sector, and a blow to the Scunthorpe community and the mill’s the 3,400 workers.
“This gut punch to U.K. steelmaking will have a profound impact, felt throughout the British economy,” he said.
“This devastating decision will cause untold disruption and damage to our supply chains, threatening jobs, businesses and the nation’s economic strengths. The steel industry is officially in a crisis. UK Steel has been sounding the alarm. Government must get back to the negotiating table to urgently stop the lifeblood draining from our sector and take action to rebuild the steel industry,” he added.
“All options should be on the table, and we need a secure future for our steel industry. The end of steelmaking at British Steel would mean we have a major gap in capacity to meet the future demand of the nation and will be an irreparable break in the armor of national security.”
The company has been seeking government support for installation of two new electric arc furnaces (EAFs). However, following many months of negotiations, no agreement has been reached, the company said.
The closures affect between 2,000 and 2,700 workers and would end 160 years of steelmaking in Scunthorpe, England. The Scunthorpe furnaces are the U.K.’s last two operating blast furnaces.
“We understand this is an extremely difficult day for our staff, their families, and everyone associated with British Steel. But we believe this is a necessary decision given the hugely challenging circumstances the business faces,” said British Steel chief executive officer Zengwei An.
“We remain committed to engaging with our workforce and unions, as well as our suppliers and customers during this time.”
The (London) Telegraph reported that the announcement came after British Steel, which is owned by China’s Jingye Group, rejected a GBP500 million offer from the U.K. government to help fund a process conversion. British Steel’s owner had been seeking GBP1 billion for the project, The Telegraph said.
UK Steel director general Gareth Stace said the announcement is a “heartbreaking and pivotal moment” for the U.K. steel sector, and a blow to the Scunthorpe community and the mill’s the 3,400 workers.
“This gut punch to U.K. steelmaking will have a profound impact, felt throughout the British economy,” he said.
“This devastating decision will cause untold disruption and damage to our supply chains, threatening jobs, businesses and the nation’s economic strengths. The steel industry is officially in a crisis. UK Steel has been sounding the alarm. Government must get back to the negotiating table to urgently stop the lifeblood draining from our sector and take action to rebuild the steel industry,” he added.
“All options should be on the table, and we need a secure future for our steel industry. The end of steelmaking at British Steel would mean we have a major gap in capacity to meet the future demand of the nation and will be an irreparable break in the armor of national security.”
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