British Steel Announced Shutdown of Scunthorpe Blast Furnaces

SEATTLE (Scrap Monster): British Steel announced plans to replace its blast furnaces with electric arc furnaces (EAFs), as part of its green transition. However, the proposed shutdown of coal-fired blast furnaces is expected to leave at least 2,000 jobs at risk in Scunthorpe, warned unions. As per plan, the blast furnaces will be replaced with two EAFs- one at Scunthorpe and the other at nearly Teesside.

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The decision follows findings by the company that high energy and labour costs have long been impacting the profitability of the company. The transition will make UK-produced steel competitive and ensure sustainable future of the company’s steelmaking business in the country. Furthermore, the proposed plan would reduce its carbon dioxide emissions by as much as 75%.

The company proposes to invest £1.25bn, which is subject to receipt of appropriate support from the UK government. The new EAFs are expected to become operational by late 2025, it said.

Meantime, Roy Rickhuss, Community Union general secretary noted that the union is deeply concerned by the company’s plans for an EAF-only approach at Scunthorpe and Teesside. It called for a meaningful consultation in order to assess all options to secure the future of steelmaking, he added.