The fate of steel manufacturing in Scunthorpe is far from sealed, the government declared this week, amidst growing pressure to nationalise the plant. British Steel has kickstarted discussions regarding the potential closure of two blast furnaces, sparking apprehension over massive job losses. Business Minister, Sarah Jones, emphasised that the preliminary closure of the furnaces was ‘not yet a settled matter’. Negotiations are scheduled this week with the firm’s Chinese owners, Jingye. Jones’ comments were in response to an urgent query in the House of Commons from Tory MP Martin Vickers, expressing fears over the lack of orders to secure vital raw materials for the furnaces. The closure would mark the cessation of a 160-year-old steel-making legacy in the town. It is understood that Jingye anticipated a £1bn government funding but was instead offered £500m to aid its shift to a more eco-friendly steel production method using a new electric arc furnace. Jones reiterated that the government’s preference was for a commercial solution, with private investment and government backing. However, she stressed that ‘no options are off the table’ to secure the steelworks’ future.
This story was adapted by The Lincoln Post from original reporting by www.bbc.com.
