Council leader to head to China to discuss British Steel’s future in Scunthorpe
North Lincolnshire Council is sending a delegation to China in the coming weeks to try to save hundreds of jobs at Scunthorpe Steel which could be lost as part of the owners' plans to decarbonise the site.
It comes as British Steel has not ruled out moving forward its coke blast furnaces closure plans to this year.
Last year the Chinese company, Jingye, announced plans totalling £1.25 billion to open an electric arc furnace in order to make the steelmaking process more sustainable.
It sparked fears that it would mean the closure of the two existing blast furnaces and some reports suggest that could happen before Christmas.
Unions say it would mean 50% less steel would be made at the Scunthorpe site, and would likely make more than 2,000 of the current 3,200 workforce redundant.
Three people from the council, including the leader, Cllr Rob Waltham, are due to head to China next month to hold talks with senior officers, civic leaders and directors of the company.
One of the things the local authority will be seeking support on is the council's pledge to develop a 300 acre site at the Steelworks as part of changes to create new green engineering and energy jobs. A council document published last month confirmed an April 2026 target date to establish such a park on unused British Steel land.
They'll also stress the importance of protecting the sovereign capability for blast furnace steel while still pressing ahead with this new green future for steelmaking.
A final decision is yet to be made as British Steel is discussing its plans to cut carbon emissions with the government. But it's thought likely that ministers will pledge investment to help the company decarbonise. North Lincolnshire Council says using taxpayers' money to lose jobs is not acceptable.
Cllr Waltham said: “We have been working with British Steel and the previous government across a number of years to protect steelmaking and livelihoods here in North Lincolnshire. We continue to work the new government too and we are asking them to back our plan for the site and protect steelmaking and jobs locally.
“Whatever the plans are going forward, we have to protect the sovereign capability for blast furnace steel and create a new future for steelmaking.
“At the same time, using taxpayers’ money to lose jobs is not acceptable.
“We are determined to protect and enhance this vital industry, which is the backbone of our local economy and essential to our national security.”
The council’s cabinet approved the local authority’s aims on steel last month.
These comprised maintaining UK quality steel production in Scunthorpe, “realistic decarbonisation”, and unlocking derelict steel land for other uses.
The council intends to create its own development corporation to enable development of the derelict steelworks land.
British Steel says it is discussing its plans to cut carbon emissions with the government.
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