Multi-union Plan Aims to Keep Scunthorpe Furnaces Open During EAF Construction

Three unions created a plan for British Steel. The plan involves keeping Scunthorpe’s furnaces active, and they want the government to address carbon costs.

GMB, Community, and Unite met Jingye Group’s leaders. Jingye owns British Steel, and the unions presented their plan to the bosses. The plan covers the shift to electric furnaces and also focuses on low carbon steel.

GMB says British Steel seems open to the plan and needs help with carbon costs from the government. The company deemed the union’s plan credible and steel consultants Syndex helped make it. The company then accepted many suggestions.

Charlotte Brumpton-Childs, a GMB National Officer, spoke about the union plan. She stated Scunthorpe can keep both furnaces running while shifting to low carbon methods. Keeping furnaces running lowers risks and protects many jobs.

Jingye sees strong reasons to keep the furnaces. However, carbon costs create a big problem because government policy sets those costs.

The plan needs the ministers to cut policy costs, which other European nations have already done. Thousands of jobs are at stake here, and primary steelmaking is also at risk. Carbon costs should not block a sensible transition.

A British Steel spokesperson stated they are in talks with the government about their plans. These plans involve cutting carbon and future operations. Discussions continue, but no decisions are final.

British Steel may not build an EAF in Teesside. Instead, they might build two in Scunthorpe, an idea that came after media reports. A British Steel spokesperson stated nothing is decided yet.

British Steel already has permission for an EAF, as a council approved it in April 2024. There is a timeline in place for furnace decommissioning.

Blast furnaces will run until the EAF functions, according to what British Steel stated, though questions about this plan came up later. Building the EAF will take around 22 months.

The Department for Business was contacted for comment. The government pledged £2.5bn for the steel industry and launched a Steel Council as well, composed of leaders from across the industry. It will advise the government on steel strategy.