British Steel’s Chinese owners, Jingye, dismiss UK government’s £500m offer to support transition to eco-friendly steel production, leaving workers facing uncertainty.
British Steel has announced that it may close two of its blast furnaces, placing more than 2,000 jobs at risk. The company, which is the second-largest steel producer in the UK, is consulting with its workforce about potential redundancies. The closure proposal, affecting over half of British Steel’s 3,500 employees, follows the rejection of a £500m subsidy offer from the UK government, aimed at supporting the transition to greener steel production.
Jingye, the Chinese parent company of British Steel, turned down the offer on March 26, 2025. The subsidy, presented by Business and Trade Secretary Jonathan Reynolds, was designed to assist in converting operations to produce low-carbon steel. However, talks between the government and Jingye have not yet led to an agreement, with the government offering no additional incentives at this stage.
The rejection comes amidst challenging market conditions, including the impact of tariffs imposed by former President Donald Trump, which added a 25% cost on steel and aluminium imports, resulting in the cancellation of some orders. Despite this, British Steel, which contributed £2.3bn to the UK economy in 2023, is struggling with financial instability, with losses of around £700,000 per day.
Government representatives have expressed their commitment to securing a future for the steel industry in the UK, with Reynolds stating that they would continue to negotiate with Jingye. However, the closure of the Scunthorpe site would be a devastating blow for the local community, which relies heavily on the steel industry for jobs and economic stability.
Unions, including Community, GMB, and Unite, have labelled the situation as “devastating” and urged both the government and Jingye to resume talks. Roy Rickhuss, General Secretary of Community Trade Union, described the news as a “dark day” for the industry and called for urgent action to prevent further job losses and safeguard the future of steel production in the region.
