British Steel will not continue consultations on creating up to 2,700 steel workers at the Scunthorpe factory after the government took control of the company earlier this month.
Chinese company Jingye promised a “new chapter” when it purchased British steel in 2020. Last month, it proposed closing two Scunthorpe explosive furnaces, threatening its role and ending its ability to produce British iron from scratch.
The British government, recalling Parliament, responded by approving a law granting emergency powers to ministers, gaining control of the company and continuing production on the site.
British steel on Tuesday confirmed it would officially withdraw its redundant consultation form and formally end the process.
This decision comes after a desperate scramble at the highest level of government to ensure the shipment of raw materials to feed two furnaces of plants.
Lisa Coulson, interim chief executive at British Steel, said: “This has been a difficult and worrying time for the UK steel staff and their families, but we can see that we are closing redundant consultations without action.
British Steel said it avoided the need for so-called “sarfly taps” by ensuring a continuous supply of caulking coal to the plants. This is the process of drilling holes in the bottom of the blast furnace, tapping on molten metal and slag, or drilling holes.
Tapping Queen Beth was able to effectively suspend the business and keep Queen Anne burning as normal, bypassing the limited amount of raw materials available to the limited remaining raw materials. In theory, Bess could have been reopened, but in reality, this is not cost-effective for a furnace that is nearing the end of life.
Minister of Industry Sarah Jones said: “The lawsuit this government filed on April 12th and we are extremely important to this country and very important to thousands of steel workers and their families. We will always stand up to the steel industry.
“Now, thanks to decisive actions to protect steel production at Scunthorpe, British Steel has cancelled the redundant consultation started by owner Jingye, bringing certainty to thousands of hardworking staff over the long term.”
Unite Union said:
“This should be just the first step to launching the nationalization process. The government now needs to implement a full overhaul of energy policy, with its commitment to invest in renewable energy to lower energy prices for heavy industries like steel production.”
“We’ve been working hard to get into the world,” said Alun Davies, steel secretary for the Community Union.
“We look forward to continuing these productive relationships in the future. Through this collective effort backed by workforce commitment and determination, Scunthorpe Steelmaking has been saved from the edge of a disastrous cliff.
“We will continue to work tirelessly to ensure that we need business now and have a bright future that we deserve.”
