Business
Thousands of British Steel Jobs at Risk Due to Funding Dispute with UK Government
March 27, 2025
April 4, 2025
By Evans Momodu
Published 20:02 UK GMT
British Steel's Scunthorpe blast furnaces could shut down within days after Chinese owner Jingye cuts essential supplies. UK government considers nationalisation to save jobs and domestic steel production.
Jingye, which acquired British Steel from receivership in 2020, recently rejected a £500 million rescue package offered by the UK government.
According to union sources, the company has now cancelled future shipments of essential inputs like iron ore and coal, effectively bringing steel production at the historic Scunthorpe site to a grinding halt.
These developments come amid rising concerns over the UK’s industrial resilience and national security. The two blast furnaces at Scunthorpe represent the last domestic sources of virgin steel, produced from raw materials rather than recycled scrap. Their closure would mark a significant loss for the country’s manufacturing base and defence supply chain.
The Department for Business and Trade is reportedly considering nationalisation as a last-ditch effort to save the steelworks and protect thousands of jobs in North Lincolnshire. However, time is running out, with shutdowns potentially starting as early as next month—sooner than previously feared.
As global steel markets face increasing geopolitical tension, the potential collapse of British Steel could further weaken the UK’s position in the international manufacturing landscape.
Source: Sky News
