Steel closures a 'fait accompli', customer claims

British Steel has launched a consultation over the future of blast furnaces in Scunthorpe

British Steel has said it has enough raw materials to keep blast furnaces running after a UK customer raised fears about stocks running out.

Simon Boyd, from Reidsteel, claimed British Steel, had "already decided to stop ordering raw materials" and the closure of the furnaces in Scunthorpe was a "fait accompli".

Mr Boyd is calling on the government to consider nationalising British Steel after the company launched a consultation over the potential closure of the two furnaces, putting up to 2,700 jobs at risk.

Responding to the claims, a spokesperson for British Steel said: "As part of our ongoing operations, British Steel has raw material stocks to supply our blast furnaces."

Mr Boyd's company, which is based in Dorset, constructs large steel buildings around the world.

He warned the Scunthorpe furnaces would shut in June if no action was taken. Their loss would "affect every steel manufacturing business in the UK".

"We need to take this back under public ownership. We have to retain the capability to make blast-furnace steel and low-carbon steel through electric arc furnaces," he said.

"If we lose the capability to make steel in the UK, we will be relying on imported steel and then having to fashion that steel into all the components we need to use in manufacturing.

"This would be a massive betrayal if we don't take back control of British Steel."

He added: "The government only has the matter of a few weeks to step in here and take back control of British Steel."

'Generous offer'

Last week, British Steel said its formal consultation included options to close the furnaces either in June, September, or at a future point beyond September.

It said the blast furnaces were "no longer financially sustainable" due to tough market conditions, the imposition of tariffs and higher environmental costs.

The BBC understands British Steel was expecting a £1bn injection of government money to keep the business going, but was offered £500m.

Following its announcement, the industry body UK Steel called on the government to consider "all options" to secure the future of British Steel.

Meanwhile, the Community union said ministers "must move to nationalise the business" if a deal with Jingye, who own British Steel, could not be reached.

Last week, the Prime Minister's official spokesperson said the government had made a "generous offer" to British Steel and it would continue to work with the company and Jingye to secure its future.

The British Steel spokesperson added: "We remain open to working with the UK Government on a joint investment in Electric Arc Furnace steelmaking, so we can continue to meet the UK's infrastructure needs."

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