British Steel considers union plan to keep blast furnaces open

However, the Chinese-owned steel manufacturer added that in order to achieve this, the British government must make progress on lowering carbon costs.

Unions GMB, Community and Unite met with bosses from British Steel owner Jingye this week and presented their plan to maintain a two blast furnace operation throughout the transition to low-carbon steelmaking.

According to GMB, the company acknowledged that the alternative plan, prepared by the independent steel consultants Syndex, was ‘a serious and credible piece of work’, and accepted a number of the recommendations and findings.

However the future of the blast furnaces remains the most important issue to resolve, say the unions.

Charlotte Brumpton-Childs, GMB national officer, said: “The multi-union plan means Scunthorpe having both blast furnaces open as the site transitions to low-carbon steelmaking. We believe that keeping the blast furnaces running is vital as it will reduce the risks of the transition and protect thousands of jobs. Jingye warmed to the proposal and agreed there were strong arguments for maintaining the blast furnaces. But the major barrier is the additional carbon costs to be paid under government policy regulations. For our plan to be viable – we need ministers to provide relief from these policy costs, just as other European countries have done. Thousands of jobs and primary steelmaking cannot be lost because carbon costs rule out British Steel pursing a sensible and just transition to low-carbon steelmaking.”

A spokesperson for the department for business and trade said the government ‘will simply not allow the end of steel making in the UK’.

"We're working across government in partnership with trade unions and businesses, including British Steel, to secure a green steel transition that's right for the workforce, represents a good investment for taxpayers and safeguards the future of the steel industry in Britain," they added.