A local MP has issued a dire warning: immediate government intervention is the only lifeline that could prevent the loss of thousands of steel jobs in Scunthorpe. Conservative MP for Brigg and Immingham, Martin Vickers, has expressed concerns, suggesting that if the government doesn’t take action this week, British Steel’s blast furnaces will halt their operations by mid-May due to a lack of necessary raw materials. The company is currently reviewing the potential closure of its blast furnaces, thereby putting up to 2,700 jobs directly at risk.
After failed discussions between British Steel’s owners, Jingye Group, and the government around a support package, a consultation was announced on March 27. Earlier that week, the government had proposed a package believed to be worth £500m for the switchover from coke blast furnaces to environmentally friendlier steelmaking via electric arc furnaces. Despite initial refusal, additional conversations took place on April 4.
Mr. Vickers has twice brought this up in Parliament over the past ten days, emphasising the urgent requirement for raw materials for the furnaces. Mr. Vickers supports nationalisation, as it could provide a buffer to attain private sector financing and allow for world trading stabilisation. He gave voice to his concern regarding the lack of urgency in the government’s reaction, noting that Jingye had cancelled the raw material order and that without a fresh order, production processes will come to a stop by mid-May. He appealed for the government to act swiftly to ensure the continuance of production.
While a British Steel spokesperson chose not to comment on the procurement of raw materials, they stated that British Steel possesses stocks of raw materials to supply their blast furnaces and remained open to combined investment in Electric Arc Furnace steelmaking with the UK Government.
Mr. Vickers also underlined the necessity for government assistance and active participation with North Lincolnshire Council leader, Councillor Rob Waltham, who has been drawing up contingency plans. There was local dismay that Prime Minister Boris Johnson had not committed to meeting local MPs and the council leader to discuss the situation at the Scunthorpe steelworks, though he had earlier shown personal interest in the matter.
This story was adapted by The Lincoln Post from original reporting by www.grimsbytelegraph.co.uk.
