Scunthorpe Steel Furnace Closure: A ‘Done Deal’ or a Cry for Help?

British Steel has dismissed claims of an impending shutdown of their Scunthorpe blast furnaces, after Simon Boyd of Reidsteel expressed fears of dwindling raw material stocks. Boyd ignited alarm by suggesting British Steel already ceased ordering essential raw materials, making the closure of the Scunthorpe furnaces inevitable, or a ‘fait accompli’. His outcry called for governmental intervention, including the potential nationalisation of British Steel, as the firm’s consultation over the possible termination of the two furnaces threatens nearly 2,700 jobs. British Steel promptly countered the concerns, assuring that it has sufficient raw materials for its ongoing operations. Dorset-based Reidsteel, a global constructor of large steel structures, warned of an imminent shutdown by June if no immediate action is taken. Boyd emphasised the far-reaching consequences, stating that the loss would ‘affect every steel manufacturing business in the UK’. He passionately urged the government to take back control of British Steel, warning that failure to do so would be a ‘massive betrayal’. British Steel confirmed its consultation includes options to terminate the furnaces in June, September or at a later date, citing adverse market conditions, tariffs and escalating environmental costs as reasons for the furnaces’ lack of financial sustainability. While the government has made a ‘generous offer’ to British Steel, the Community union and industry body UK Steel have appealed for all options to be considered to safeguard the future of British Steel.