Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

British Steel owner preparing to cut as many as 2,000 jobs

by October 23, 2023
October 23, 2023
British Steel owner preparing to cut as many as 2,000 jobs

British Steel’s Chinese owner is preparing to cut as many as 2,000 jobs as it battles losses believed to be running at £30m a month, according to reports.

The potential cuts, which amount to almost half of the Scunthorpe-based firm’s 4,500 workforce, are part of a switch to greener steel production using electric arc furnaces instead of polluting blast furnaces, which use coke to melt iron ore.

The cuts, first reported in the Sunday Times, are still under consideration and it is understood that no firm decision on the restructure has been made.

The UK government has offered the company’s owner, Jingye Group, £300m to support a shift to electric arc furnaces, but negotiations on finalising the deal are understood to be ongoing. The cash was reportedly linked to protecting jobs and a £1bn investment by the Chinese group, and it is not clear how job cuts might affect the government’s investment.

The government recently agreed a £500m support package for Tata Steel to fund the transition to electric arc at the Port Talbot steelworks in Wales.

A spokesperson for the Department for Business and Trade said: “We continue to work closely with industry, including British Steel, to secure a sustainable and competitive future for the UK steel industry.”

The UK’s steel industry – which is one of the most difficult to decarbonise because of its huge energy requirements and the use of coking coal in iron smelting, a process that emits carbon dioxide directly – is suffering from rising costs and competition from cheap steel made in China and elsewhere.

A British Steel spokesman said: “While decarbonisation is a major challenge for our business, we’re committed to transforming British Steel into a green and sustainable company providing long-term, skilled and well-paid careers for thousands of employees and many more in our supply chains.

“As part of our journey to net zero, it is prudent to evaluate different operational scenarios to help us achieve our ambitious goals and we are continuing to assess our options.”

The restructure emerged after British Steel, which was rescued from collapse by Jingye in 2020, admitted in an industry meeting with other organisations last week that it was losing up to £30m a month, according to the Mail on Sunday.

Steel production has been hit by the increased cost of carbon credits as well as much higher energy prices after Russia’s invasion of Ukraine.

The company did not confirm its financial position, but admitted it was struggling with a “temporary production issue” and said it was “taking decisive action to minimise the potential impact on customer orders”.

It said in a statement: “The matter will be resolved at the earliest opportunity. We are manufacturing iron and steel and continue to work closely with our customers to satisfy demand and ensure they get the high-quality products they require.”

Read more:
British Steel owner preparing to cut as many as 2,000 jobs

0
FacebookTwitterGoogle +Pinterest
previous post
SMEs fear winter supply chain crunch could hit revenue in crucial Christmas trading period
next post
Simon Cowell backs new streaming platform launched to champion millions of content creators

You may also like

Zopa swoops in and acquires buy-now pay-later firm...

February 16, 2023

Brett Reck: Virginia’s Innovative Financial Expert

July 7, 2024

From Boardroom to Global Markets: The Ultimate Guide...

June 26, 2024

How Important Is It To Know How To...

February 10, 2023

Companies desperate to recruit skilled workers push up...

February 13, 2023

London City Airport Secures £130m Lifeline Amid Business...

October 13, 2024

BYD overtakes Tesla as world’s top electric vehicle...

January 2, 2024

Why Guests Ignore Guest Feedback Forms—And How to...

February 20, 2025

Bank of England may cut rates more aggressively...

October 4, 2024

British AI pioneers share £1 million in prizes...

May 21, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Elon Musk warpath against Trump’s ‘big, beautiful bill’ rattles House GOP

      June 4, 2025
    • Durbin obstruction threat chills Senate as Trump nominees hang in balance

      June 4, 2025
    • Elon Musk posts ‘Kill Bill’ meme in latest push to nix Trump’s ‘big, beautiful bill’

      June 4, 2025
    • Why ADX Can Mislead You — And How to Avoid It

      June 4, 2025
    • S&P 500 on the Verge of 6,000: What’s at Stake?

      June 4, 2025
    • Johnson says Republicans ‘don’t have time’ to craft new Trump plan despite Musk’s call to ‘KILL the BILL’

      June 4, 2025

    Categories

    • Business (8,143)
    • Investing (2,006)
    • Politics (15,518)
    • Stocks (3,127)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved