British Steel to shut Scunthorpe blast furnaces in £1.25bn decarbonisation planNewsflash: British Steel has just announced proposals to replace its blast furnaces in Scunthorpe with two new 2 electric arc furnaces (EAFs).
One EAF would be installed at Scunthorpe, with the second earmarked for its manufacturing site in Teesside, and could be operational by late 2025.
British Steel says the £1.25bn plan would help it become a clean, green and sustainable business, by decarbonising its operations.
However, the plan is subject to “appropriate support from the UK Government”
As we flagged earlier, there are reports that British Steel would be offered £500m in official support to make the switch, which could cost up to 2,000 jobs.
British Steel CEO and President, Xijun Cao, says:
“Decarbonisation is a major challenge for our business but we are committed to manufacturing the home-made, low-embedded carbon steel the UK needs.
“We have engaged extensively with the public and private sector to understand the feasibility of producing net zero steel with our current blast furnace operations.
However, thorough analysis shows this is not viable.
“Detailed studies show electrification could rapidly accelerate our journey to net zero and drive British Steel towards a sustainable future. It would also ensure we can provide our customers with the steel they require.
“Our owners, Jingye, have already invested £330 million in British Steel in just 3 years and they’re committed to the unprecedented investment our proposals require.”
British Steel says it has started preliminary talks with trade unions about the electrification plan, and has promised to support employees affected by the decarbonisation plans.
The company is also working with North Lincolnshire Council on “a masterplan” to attract new businesses and jobs to the Scunthorpe site, as some parts of the site could become vacant if the proposals go ahead.
Key events
British Stell also say they examined whether they could simply build one large electric arc furnace in Scunthorpe, which would be big enough to manufacture all the steel we require for our rolling mills in the Humber and the North East.
It realised, though, that such a large furnace would need a new connection to the National Grid, which probably wouldn’t be available until 2034.
So instead, the “most viable and timely option” is to have 2 smaller furnaces – one at Scunthorpe, the other at Teeside – to produce the volumes of steel needed.
Trade body UK Steel says the industry has reached a ‘turning point’, as major producers outline their plans to decarbonise their operations.
UK Steel director general, Gareth Stace, said:
“With British Steel’s announcement, it is clear the UK steel sector is completely committed to rapid decarbonisation. Just one year after publishing the sector’s Net Zero roadmap, the UK’s major steel producers are taking crucial steps to decarbonise by 2035.
“UK steelmaking needs to compete on the world market and regain market share at home and abroad.
“This is a turning point for UK steelmaking. During this transition, we must all work together in partnership with industry, Government and trade unions to ensure the future of our sector. As we switch to electric steelmaking and cut our emissions, planning regulation snags and high electricity prices must not hold back investment in new EAF capacity. It will not be a straightforward transition, but for the whole steel sector, from existing electric furnaces to companies making huge investments now, our goal is clear.”
The Community union are concerned by British Steel’s plans to close its blast furnaces at Scunthorpe.
Community union general secretary Roy Rickhuss said:
“Were they to be realised, the plans that British Steel has announced, combined with Tata Steel’s plans, would leave the UK unable to make steel from raw materials and dangerously exposed to international markets.
“Community firmly believes that the blast furnaces continue to be vital in any responsible transition to green steelmaking.”
British Steel to shut Scunthorpe blast furnaces in £1.25bn decarbonisation planNewsflash: British Steel has just announced proposals to replace its blast furnaces in Scunthorpe with two new 2 electric arc furnaces (EAFs).
One EAF would be installed at Scunthorpe, with the second earmarked for its manufacturing site in Teesside, and could be operational by late 2025.
British Steel says the £1.25bn plan would help it become a clean, green and sustainable business, by decarbonising its operations.
However, the plan is subject to “appropriate support from the UK Government”
As we flagged earlier, there are reports that British Steel would be offered £500m in official support to make the switch, which could cost up to 2,000 jobs.
British Steel CEO and President, Xijun Cao, says:
“Decarbonisation is a major challenge for our business but we are committed to manufacturing the home-made, low-embedded carbon steel the UK needs.
“We have engaged extensively with the public and private sector to understand the feasibility of producing net zero steel with our current blast furnace operations.
However, thorough analysis shows this is not viable.
“Detailed studies show electrification could rapidly accelerate our journey to net zero and drive British Steel towards a sustainable future. It would also ensure we can provide our customers with the steel they require.
“Our owners, Jingye, have already invested £330 million in British Steel in just 3 years and they’re committed to the unprecedented investment our proposals require.”
British Steel says it has started preliminary talks with trade unions about the electrification plan, and has promised to support employees affected by the decarbonisation plans.
The company is also working with North Lincolnshire Council on “a masterplan” to attract new businesses and jobs to the Scunthorpe site, as some parts of the site could become vacant if the proposals go ahead.
Jobs cuts looming at publisher Reach too
Mark Sweney
The owner of the Mirror and Express newspapers is poised to announce sweeping job cuts as it accelerates its digital-first and seven-day publishing strategy, as the embattled newspaper group battles to cope with a slump in print and digital advertising revenues.
The move by Reach, which also owns hundreds of regional titles including the Manchester Evening News, Birmingham Mail and Liverpool Echo, could put the jobs of as many as a quarter of staff working on its national titles at risk.
The announcement, which could be made as soon as Wednesday, follows Reach announcing a cull of 200 roles in a £30m cost-cutting drive in January following a slump in the digital and print newspaper advertising market.
Market conditions have continued to remain torrid; the market value of Reach has slumped 30% over the last year, with its digital revenue strategy hit by large social media platforms, most notably Facebook, de-prioritising news.
In its third quarter trading update, Reach, reported a 13.7% drop in digital revenue as online page views slumped by 21% year-on-year in the first nine months.
Total print revenues also fell by 6% with both income from newspaper sales and advertising declining.
The acceleration of the digital first strategy is also expected to see the group’s remaining separate daily and Sunday newspaper operations – The Mirror, Sunday Mirror and Sunday People, Daily Express and Sunday Express – move closer to single seven day publishing operations.
The company said in its latest financial update that it expects to make £95m in profits this year but remains focused on “driving efficiencies” and cut operating costs.
In July 2020, Reach cut 550 staff, about 12% of its workforce at the time, in response to the Covid pandemic.
Reach declined to comment.
Over in New York, trading in co-working space company WeWork has been halted, ahead of a pending news announcement.
There were reports last week that WeWork was planning to file for bankruptcy soon, as it struggled to handle its massive debt pile and hefty losses.
Downing Street says it remains “committed” to supporting the steel industry, as we await news from Scunthorpe.
The Prime Minister’s official spokesman told reporters today:
“We are continuing to work closely with industry including British Steel to secure a sustainable, competitive future for the sector and its workers and we’ve offered a generous support package including £300m of investment for British Steel to cut emissions, safeguard jobs and unlock over £1bn in stakeholder investment.
“Now, ultimately, it is for British Steel themselves to manage commercial decisions for their company’s future.
“Obviously, I can’t specifically comment on their discussions but we will remain committed to supporting the sector.”
Mark Sweney
Sir William Lewis, the former editor of the Telegraph who had been linked to a potential bid for the influential right-leaning British newspaper, has been appointed as the publisher and chief executive of the Washington Post.
Lewis has held a string of high-profile positions including Rupert Murdoch’s News UK, Wall Street Journal and Dow Jones, and three years ago was included on a shortlist in the hunt for a new director general of the BBC.
The 54-year old, who recently co-founded the News Movement, which targets the younger social media generation that rely on platforms including YouTube, Facebook and Tik Tok, plans to halt plans to put together a bid in the £750m auction of the Telegraph.
Lewis will take up the role at the Washington Post, which was acquired by Amazon founder Jeff Bezos for $250m in 2013, on 2 January taking over from interim chief executive Patty Stonesifer.
Earlier this year, Fred Ryan, the chief executive and publisher of the Washington Post, left after almost a decade.
“Ten years ago, I made a commitment to the future of The Washington Post, inspired by its ambitious and consequential journalism,” said Bezos, adding:
“Today, I stand confident in that future knowing it is in the hands of Will, an exceptional, tenacious industry executive whose background in fierce, award-winning journalism makes him the right leader at the right time.”
Last month, the Washington Post announced plans to make 240 voluntary redundancies, about 10% of its workforce, because its “subscription, traffic and advertising projections” in recent years had been “overly optimistic”.
TUC general secretary Paul Nowak says:
“British Steel must halt these plans and get around the table with unions.
“Closing down the blast furnaces at the Scunthorpe plant would have a devastating impact on staff and the local community.
“Workers won’t stand back and watch as Britain’s steel industry is dismantled in real time.
“The Conservatives are presenting a false choice. Other countries have shown that it is possible to transition to zero-carbon steel making and protect good steel-making jobs for the future.
“We can do the same here. The UK badly needs a Biden-style industrial and climate plan.”