Posted on 23 Feb 2023
British Steel has announced officially its intention to stop coke production in Scunthorpe, closing the existing coke ovens and therefore preparing for the potential need to cut up to 260 jobs at its site.
The company has been considering job cuts to reduce costs for a while. It is also in continuous talks with the local government for a £300 million tax payer-funded aid package aimed at supporting the transition of the company in the coming years.
Jingye, the owner of the British Steel assets, confirmed its commitment to the long-term future of the UK-based plant, but added that decarbonization, together with inflation and higher energy costs remain a challenge.
“Last year our energy bill rose by £120 million while we’ve also faced an increase of over £70 million in our annual carbon costs. We have taken action to reduce costs within our control; however, steelmaking in the UK remains uncompetitive when compared to other international steelmakers,” British Steel said in a statement seen by Kallanish. “Our energy costs, carbon costs and labour costs are some of the highest across the world, which are factors that we cannot influence directly.”
“We entered into talks with the UK Government in Summer 2022 and are extremely grateful for its support. It’s important we have the correct policies and frameworks in place to back our drive to become a clean, green and successful company and we’re continuing to discuss this with the government,” the company added.
The closure of coke ovens will force the company to buy coke from other suppliers to feed its blast furnaces. A timeline for the closure of the coke ovens has not been communicated yet, but the company explains that it aims at keeping the period of uncertainty to a minimum.
“The coke ovens, situated at British Steel’s integrated steelmaking site in Scunthorpe, are reaching the end of their operational life and their closure would bring environmental benefits including reductions in emissions to air and water,” the company concluded.
Source:Kallanish
