British Steel has engaged with a multi-union plan to keep two blast furnaces open in Scunthorpe and save thousands of jobs, but said the Government must act on carbon costs.
Unions GMB, Community, and Unite met with bosses from British Steel owner Jingye this week and presented their plan to maintain a two-blast-furnace operation throughout the transition to low-carbon steelmaking.
The company acknowledged that the alternative plan, prepared by independent steel consultants Syndex on behalf of GMB, is a serious and credible piece of work and accepted a number of its recommendations and findings.
However, the future of the blast furnaces remains the most important issue to resolve.
Charlotte Brumpton-Childs, national officer at GMB, said: “The multi-union plan means Scunthorpe having both blast furnaces open as the site transitions to low carbon steelmaking.
“We believe that keeping the blast furnaces running is vital as it will reduce the risks of the transition and protect thousands of jobs.
“Jingye warmed to the proposal and agreed there were strong arguments for maintaining the blast furnaces.
“But the major barrier is the additional carbon costs to be paid under Government policy regulations.
“For our plan to be viable – we need Ministers to provide relief from these policy costs, just as other European countries have done.
“Thousands of jobs and primary steelmaking cannot be lost because carbon costs rule out British Steel pursing a sensible and just transition to low carbon steelmaking.”
A spokesperson from British Steel said: “We are in ongoing discussions with the government about our decarbonisation plans and the future operations of our UK business.
“While progress continues, no final decisions have been made.”