Posted on 14 Nov 2024
British Steel, a steel company owned by China’s Jingye Group, has confirmed that its blast furnaces in Scunthorpe will be operating next year, BBC reports.
Earlier it was reported that the blast furnaces could be closed by Christmas 2024. However, according to a company spokesperson, British Steel has recently acquired raw materials that will allow it to continue operations in 2025.
Last year, British Steel announced plans to build electric arc furnaces at its Scunthorpe and Teesside sites. However, this step required government support, which was postponed.
Last week, UK Secretary of State for Business and Trade Jonathan Reynolds met with the CEO of Jingye Group to discuss the future of the Scunthorpe plant, The Guardian reports.
The government is seeking assurances that jobs in Scunthorpe will be protected if a bailout package is agreed, and to ensure financial stability in the event of such a move.
The aid for British Steel is likely to come from the £2.5 billion allocated by the government to support steelmakers in decarbonizing production. However, it is believed that British Steel will be eligible for a relatively small portion of this amount.
As GMK Center reported earlier, British Steel announced an eight-fold increase in pre-tax losses in 2022 to £408.4 million on a turnover of £1.7 billion. In 2021, the company’s losses amounted to £49.5 million on a turnover of £1.5 billion.
In June 2024, British Steel applied for a £600 million government support package. The plans outline the costs of switching from blast furnaces to electric arc furnaces.
Source:GMK Center
