Scunthorpe MP Holly Mumby-Croft has told of her extreme disappointment at the potential loss of 260 steelmaking jobs in the town.
British Steel has proposed to end a vital process in North Lincolnshire, as negotiations continue on a support package. It looks set to close coke ovens on the integrated site, relying on imports instead.
The company has told how it felt forced to take decisive action against unprecedented cost increases, with initial steps to start negotiations lambasted in Westminster earlier this month.
Read more: Union boss warns of 海角视频 vulnerability without vital steel process as jobs hope explored
Mrs Mumby-Croft, who had triggered that debate, said: “I am extremely disappointed by this news. It will cause huge worry and distress to local residents.
“The negotiations on a support package for our steelworks, worth hundreds of millions of pounds, are still ongoing with the Government, so, I am deeply disappointed that Jingye has taken what is a commercial decision to make this raft of redundancies.
“This is not a way to behave. It sends entirely the wrong message and breaches the spirit of negotiations. In recent months I have seen a level of government focus on steel that had been genuinely encouraging. Jingye’s actions lead to questions over their commitment to our steelworks and their commitment to the community that they are a part of here in Scunthorpe.
“Decent, hardworking families across Scunthorpe will now be worried sick wondering if they will lose their jobs. Other businesses throughout the supply chain and the local economy will also be worried.”
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Employees were briefed this morning, and Mrs Mumby-Croft said she will work with ministers, the Department for Work and Pensions and North Lincolnshire Council “to make sure the right support is in place”. She has also urged anyone personally affected and requiring assistance, to contact her.
“I will continue to fight for a good deal for our steelworks,” she said. “The Government has shown its commitment to this industry; millions of pounds have already been provided to help with the costs of energy, they stepped in to pay workers and are currently negotiating to help secure a strong future for steel in both our area and across the 海角视频. All stakeholders must remain committed to doing so.”
Across the benches, Jonathan Reynolds MP, Labour’s Shadow Business Secretary, said it was “yet more worrying news for our steelworkers who desperately need a government on their side securing the bright future our steel sector could have".
He said: “Steel is the bedrock of many communities across the 海角视频. It is the foundation our manufacturing sector is built on, crucial to any net zero ambition and the beating heart of our sovereign capability.
“That is why Labour will partner with industry to invest in the new technologies needed to keep well paid steel jobs in the 海角视频 for decades to come.”
British Steel chief executive Xifeng Han's full statement on proposed job losses and coke ovens closure:
“Steel is vital to modern economies and with demand expected to grow over the coming decades, British Steel has a crucial role to play in ensuring the 海角视频 has its own supply of high-quality steel. To make sure we can deliver the steel Britain requires, we’re undergoing the biggest transformation in our 130-year history.
“To support the journey to net zero, our owners, Jingye, have invested £330 million in capital projects during their first 3 years of ownership and they continue to invest unprecedented sums of money in British Steel. Jingye is committed to our long-term future but decarbonisation is a major challenge for our business and, like most companies, we’re facing significant challenges because of the economic slowdown, rising inflation and exceptionally high energy prices. For example, last year our energy bill rose by £120 million while we’ve also faced an increase of over £70 million in our annual carbon costs.
“We have taken action to reduce costs within our control; however, steelmaking in the 海角视频 remains uncompetitive when compared to other international steelmakers. Our energy costs, carbon costs and labour costs are some of the highest across the world, which are factors that we cannot influence directly.
"For the reasons outlined, we entered into talks with the 海角视频 Government in summer 2022 and are extremely grateful for its support. It’s important we have the correct policies and frameworks in place to back our drive to become a clean, green and successful company and we’re continuing to discuss this with the government. We are committed to working together and to making the home-made steel Britain needs for generations to come.
“To build a secure future for British Steel, and protect skilled and well-paid careers for thousands of employees and many more in our supply chain, we are – like many other businesses – proposing to streamline our business. We’re disappointed at having to make such proposals but are confident they will support a successful transformation.
“The trade unions are aware of our proposal to close the coke ovens and we look forward to working closely with them to ensure a long-term safe and sustainable future for the company, thousands of employees and many more people in our supply chain. We also continue to look at other potential cost-saving measures across the business and will announce any further proposed changes in due course.
“We appreciate this may be an unsettling period for our people and we will give them our full support. We haven’t set any deadlines but aim to keep the period of uncertainty for our colleagues as short as we can. We’ll ensure this process is handled in a sensitive manner.
“Embracing new technology and ways of working will help our drive to reduce emissions and support clean growth, and we are already taking steps to improve our environmental performance. For example, we have increased the amount of scrap used in the integrated steelmaking route. In addition, we’ve started a project to add ore-based metallics to the blast furnace to displace iron ore and we manufacture a range of products with significant environmental benefits including high-strength structural steel and Zinoco rail.”