All 250 jobs threatened by the closure of British Steel’s coke ovens are to be saved.
The company will be offering alternative roles to those put at risk of redundancy by the decision, part of a drive to overcome global economic challenges.
A need for more staff across the business had been highlighted by unions when the devastating announcement was made in February. Now following a full review, the employee representatives have confirmed they will not object to the proposal.
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A British Steel spokesperson said: “In the coming months we will press ahead with the closure of the coke ovens and we are pleased to say all employees affected by this decision will be offered alternative roles in the business. We appreciate this has been a difficult time for everyone involved and I’d like to thank our people and the trade unions for their professionalism throughout the consultation process.”
The company has seen bills for energy and carbon increase by £190 million and it had told how decisive action was required because of the unprecedented rise in operating costs, surging inflation and the need to improve environmental performance.
The coke ovens were described as reaching the end of their operational life and their closure will bring environmental benefits including reductions in emissions to air and water. An initial 330 staff were involved in consultations,
British Steel will now switch to importing the coke rather than making it, and while concerns had been raised about the impact on independence when it comes to the steelmaking process, it will no longer be opposed.
The company is undergoing the biggest transformation in its 130-year history on the journey to net zero, and the spokesperson said it is continuing to look at other potential cost-saving measures across the business, calling on the UK Government to provide more help with decarbonisation, with negotiations ongoing.
It faced sharp criticism in Westminster for launching the redundancy consultation as they continued.
The spokesperson added: “Jingye has invested £330 million in capital projects at British Steel during its first three years of ownership but we also need the support of the UK Government with whom we remain in talks. We are looking forward to rapidly progressing these discussions as Jingye is committed to transforming our business with planned investments providing the government can give assurances of a competitive landscape for energy and carbon.
“Our decarbonisation strategy is underpinned by our Low-Carbon Roadmap, which will help secure low-embedded carbon steelmaking in the UK. However, we are still waiting for the British government to adopt the correct policies and frameworks now to back our drive to become a clean, green and successful company. Governments in the countries where our major competitors operate have adopted such policies and the longer we wait for their implementation in the UK, the more impact this will have on our competitiveness and the country's ability to meet its carbon objectives. We are committed to working with the government and to making the home-made steel Britain needs for generations to come.”
Major ongoing projects include the installations of a £54 million billet caster and a £26 million mast service centre, along with a near £50 million upgrade to its wire rod mill.
Other investments include £30 million on new unloaders for British Steel’s port facility, £14.6 million for improvements in energy operations and £9 million for a new rail stocking facility. All developments will improve British Steel’s product quality, range and service.
Responding to the announcement, Scunthorpe MP Holly Mumby-Croft said: "This is fantastic news for workers and their families, and will provide certainty in what I know was a very worrying time.
"I’ve made it clear at every opportunity that we need to be able to make steel here in the United Kingdom, and nowhere else can do this like Scunthorpe. Steel is a national, strategic asset that we rely upon in every aspect of our lives.
"The steelworks are facing major challenges and have been negotiating with the Government on a support package. Throughout these negotiations, I have been in close contact with ministers, British Steel and our community. I will, of course, continue to push for a deal that supports the long-term future of the steelworks.
"I would encourage all parties involved to work together to achieve this but today I want to congratulate and thank Jingye for making this decision."
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