British Steel to Shut Down Scunthorpe Blast Furnaces for Greener Electric Arc Furnaces, Risking Up to 2,000 Jobs Pending Government Support

British Steel's £1.25 billion decarbonisation plan to replace Scunthorpe and Teesside's blast furnaces with greener electric arc furnaces faces backlash from unions and locals as it could lead to heavy job losses, while the company seeks up to £500 million government support to transition towards a sustainable future.

British Steel has officially announced its decarbonisation plan which entails shutting down existing blast furnaces in Scunthorpe and Teesside, putting up to 2,000 jobs at risk. The furnaces will be replaced with more sustainable electric arc furnaces (EAFs), one in Scunthorpe and one in Teesside.
The company stresses the move as a necessary step towards creating a green and sustainable business. However, various trade unions and local communities are opposing it due to the potential heavy job losses and the impact this could have on local economies.
The implementation of the electric arc furnaces, which melt down scrap or recycled steel, is integral to the company's £1.25 billion decarbonisation plan. This transition is also contingent on £500 million government support, which British Steel is presently negotiating.
The trade unions warn that the transition to using only EAFs would end the production of primary steel products in the UK, making the country dependent on steel imports. They urge the government to intervene and keep the blast furnaces operational.
Despite the potential job losses, British Steel insists its plans aim to provide long-term, skilled, well-paid careers for thousands of employees and many more in the supply chain. The transition to greener steel production is targeted to reduce the company's CO2 emissions by around 75%, aligning with the UK's net-zero targets.