British Steel said he will end a consultation on up to 2,700 layoffs after the government took control of the business earlier this month.
An emergency invoice to save British steelThe Hauts Fourneaux Scuthorpe became law after the deputies were recalled in the House of Commons for an urgent debate on April 12.
This meant that the steel factory of Scanthorpe, in northern Lincolnshire, continued to operate while the government decides a long-term strategy, and steel in the United Kingdom more widely.
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The announcement that the jobs are secure follows confirmation of a stable offer of raw materials and the appointment of new leaders to British Steel. The factory was to lack raw materials, requiring production to stop in the only virgin steel furnace of Great Britain.
Other steel, such as in Port Talbot, in Wales, produce steel from scrap using electric ovens.
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The Chinese owner Jingye had canceled his orders for raw materials.
He said that the stove highs were “no longer financially sustainable” due to “very difficult” market conditions, prices and costs associated with transition to low carbon production techniques.
On paper, Jingye is the owner of British Steel, but the British government has inserted itself into the internal functioning of the company to legally pass the wishes of the Chinese company.
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Prices imposed by President Trump Put a 25% tax on all steel imports in the United States, further pushing costs and arousing calls to countries to obtain their own critical material supplies, especially those like steel used for defense and infrastructure.
SCUTHORPE work is “essential for both national security and the manufacture of the United Kingdom,” said the government during its debate on the emergency bill. In total, 3,500 people work on the Scantunta site.
British Steel was contacted by Sky News during the duration of 2,700 jobs.
Union reaction
The Unite union said that it was “happy that British Steel took over their minds and realized that job losses are not the means of guaranteeing that Great Britain remains industrial power”.
“The government must now implement a wholesale overhaul of its energy policy with an commitment to invest in renewable energies to reduce energy prices for heavy industry such as steel production.
“This must be in parallel with a massive investment in electric arc ovens and a national strategic plan to bring British steel users to buy at the national level for large -scale infrastructure projects.”
GMB National Officer Charlotte Brumpton-Childs described the announcement as “a fantastic new for steel workers and the inhabitants of Scatherpe”.
“It is as if a cloud had been lifted above the whole community. This confirms that the government is serious about the savings of 2,700 jobs and the steel industry of the United Kingdom. ”
Alun Davies, of the Community Union, said: “We welcome these positive developments, which follow constructive discussions between the steel unions, the government of labor and the British management of steel.
“Thanks to this collective effort, supported by the commitment and determination of the workforce, Scanthorpe Steelmaking was saved from a disastrous cliff edge.”