Talks between the government and the owner of British Steel over a £500 million state aid package have reportedly reached a deadlock, with plans to close blast furnaces in Lincolnshire now being considered.
According to the Financial Times, the closure could take place before Christmas, potentially affecting thousands of jobs at the Scunthorpe site.
Union representatives have raised concerns that nearly half of British Steel’s 4,500 workers could be made redundant if the closure goes ahead.
The Financial Times reported that a source close to the discussions expects a decision by mid-September, but suggests a deal between the government and the company is unlikely.
Speaking in the Commons on Thursday, Martin Vickers, Conservative MP for Brigg and Immingham, said: “There have been widespread media reports suggesting that coke would stop being imported from October [and] that would mean production would be stopping in Scunthorpe by Christmas.
“There are rumours concerning the fact that employees will be given notice very soon.”
A British Steel spokesperson told Energy Live News: “We are in ongoing discussions with the government about our decarbonisation plans and the future operations of our UK business.
“While progress continues, no final decisions have been made.”
The government is reportedly nearing a deal with Tata Steel to continue production at its Port Talbot site in Wales using electric arc furnaces, though this may also involve job losses.
