According to a company news release, it has already begun formal consultation with its workforce and unions effective March 27th.
SEATTLE (Scrap Monster):Leading European steel producer British Steel will provide input on the planned shutdown of Scunthorpe's blast furnaces, steelmaking facilities, and steel rolling mill capacity.
The company pointed out that a number of issues, such as extremely difficult market conditions, tariff imposition, and greater environmental expenses associated with the manufacture of high-carbon steel, make blast furnaces and steelmaking activities financially unsustainable. For a significant capital expenditure at its electric arc furnaces (EAFs), the steelmaker had applied for the UK government's approval. However, despite multiple rounds of negotiations, no progress has been made yet.
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A news release from the corporation states that, as of March 27th, it has already started official engagement with its employees and unions. The initial plan calls for closing the Scunthorpe rod mill, steelmaking facilities, and blast furnaces by the beginning of June. Closing the blast furnaces and steelmaking operations by September of this year or later are the other two alternative options under consideration.
The business will keep working with the UK government to look into possibilities for the company's future in the interim.
British Steel's CEO, Mr. Zengwei An, said the company had to make this tough choice because of the terrible situation it was in.
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