BRITISH Steel has confirmed plans to shut its coke ovens — in a move that could cost 260 jobs.
The blow came just hours before a Cabinet minister promised to help the struggling industry.
British Steel confirms plans to cut 260 jobs as coke plant struggles with energy bills
The Chinese-owned company blamed the closure of ovens at its HQ in Scunthorpe, Lincs, on an “unprecedented” rise in energy costs and the need to be greener.
The Government unveiled plans to support steelmakers and other energy intensive industries by subsidising their electricity bills.
The so-called “British Industry Supercharger” scheme will provide aid to about 300 businesses, which employ a total 400,000 workers.
Business and Trade Secretary Kemi Badenoch said it would bring the energy costs of UK industry “in line with those charged across the world’s major economies”.
Consultation on the scheme is due to take place in the spring.
Gareth Stace, director general of UK Steel said: “We welcome this announcement and look forward to working with Government to ensure full price parity with European competitors.
“It is essential we can compete on an equal footing, in the short term, within the fiercely competitive steel market, both in Europe and globally.”
Jingye Group — which rescued British Steel in 2020 — said it was up against an “economic slowdown, rising inflation and exceptionally high energy prices”.
It said it faced £120million in extra energy costs and another £80million in annual carbon costs.
British Steel employs 4,2000 workers in the UK. It said the closure of the coke ovens and job cuts were essential to “build a secure future”.
Jingye Group — which rescued British Steel in 2020 — said it was up against an ‘economic slowdown’
Jingye said steelmaking in the UK remains “uncompetitive” compared to other international steelmakers. Bosses have been in talks with the Government about further state support.
British Steel and Tata Steel are pushing for funding worth £300million each to help upgrade furnaces. The Government wants job guarantees in return.
Further job losses at British Steel are feared after reports that its owners could slash between 600 and 900 to save costs.
Jingye said: “We’re disappointed at having to make such proposals but are confident they will support a successful transformation.” It added it had not set deadlines for for redundancies as yet.
Coke ovens turn coal into coke, which burns at the higher heat and is used in steel production.
Unite union leader Martin Foster called the closure of the ovens was a “massive worry.”
He added: “This site seems to keep shrinking year by year. it’s a fraction of the size it used to be,
“And every year we seem to see the whole UK steel industry shrink that little bit more, and nobody seems to want to do anything to stop it.”
Unite national officer Linda McCulloch stressed: “This union has not yet seen any financial justification for the closure of the coking ovens. British Steel needs to come clean and open its books in order to try to justify its decisions.”
SINGLE ID FOR BRITS AIM
THE boss of SAGE has backed Sir Tony Blair’s call for the UK to introduce a single digital identity for citizens, saying it could deliver a £232billion boost for small businesses.
Sir Tony Blair’s called for the UK to introduce a single digital identity for citizens
The former Prime Minister and Lord Hague of Richmond, a former Conservative leader, said yesterday that there had to be a cross-party agreement to put technology at the heart of public services, including bringing in a single digital ID for our passport, driving licence, tax records, qualifications and right to work status.
Sage CEO Steve Hare told HOAR: “Fully digitising the operating environment for SMEs would deliver £232billion of value to the economy.
“The government must prioritise the development of a single digital identity that is both unified and secure.”
The FTSE 100 company said the government had to ensure the UK “remains a global leader in the digital age”.
MAIL TRACK RAP
THE boss of Royal Mail yesterday admitted to MPs the company did compare how long posties were standing still when doing deliveries.
Simon Thompson appeared before the Business Select Committee after doubts were raised about earlier denials that Royal Mail tracked employee delivery times.
The committee was shown bar charts hung in Royal Mail offices that set out how long postal workers stopped for.
Mr Thompson admitted it was a “breach of guidelines” that were agreed with unions.
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https://hellofaread.com/money/families-would-be-average-of-600-better-off-if-britain-built-more-houses/
