The fate of the UK’s final virgin steel plant in Scunthorpe hangs in the balance as negotiations remain in a stalemate, according to BBC sources. British Steel, the plant operator, has signalled an imminent shortage of raw materials required for steel production in the plant’s two blast furnaces. Insiders disclosed on Wednesday that the government has proposed purchasing the essential coking coal to maintain furnace operations. A digital meeting with Jingye, the Chinese plant owners, and government officials took place yesterday. However, an individual intimately involved in the talks reported to the BBC that the discussed issues are yet to be resolved, with the talks predicted to extend into Friday. Despite this, the plant’s workforce, represented by trade unions, have not been briefed on the negotiations’ status. It has been suggested to the BBC by government insiders that if the essential raw materials are not swiftly paid for, the plant may have to halt production within weeks. The Department of Business and Trade has remained silent on the matter. Jingye has expressed that the furnaces’ operation is no longer economically viable. The government, however, has not dismissed the possibility of nationalizing British Steel, which provides employment for 2,700 individuals, stating that all options are still being considered.
This story was adapted by The Lincoln Post from original reporting by www.bbc.com.
