The company, which saw its bills for energy and carbon increase by £190m in 2022, said decisive action is required because of the rise in operating costs, inflation and the need to improve environmental performance.
British Steel CEO Xifeng Han said: “To make sure we can deliver the steel Britain requires, we’re undergoing the biggest transformation in our 130-year history.
“We have taken action to reduce costs within our control; however, steelmaking in the UK remains uncompetitive when compared to other international steelmakers. Our energy costs, carbon costs and labour costs are some of the highest across the world.”
Commenting on the proposed closure, Chris McDonald, CEO of the Materials Processing Institute, said: “The closure of the Scunthorpe coking ovens is irreversible and will impact the national economy, as it produces such products as rails, beams and wire rod that are vital in supporting UK infrastructure and manufacturing.
McDonald added that the UK should follow countries across Europe, the United States, and Canada in investing in new green steel technology
“The UK is in real danger of being left behind in the race to establish a modern, competitive low-emission steel sector as high energy costs are making our own steel industry unsustainable, which makes it less attractive to invest in green steel,” he said. “If the UK fails to act…then it risks being the only modern, industrial economy without a steel sector and totally reliant on imports.”
British Steel was bought by China’s Jingye Group in March 2020, bringing fresh investment into the business. Ongoing projects include the installations of a £54m billet caster and a £26m mast service centre, both of which are scheduled to come online in 2023. A near £50m upgrade to its wire rod mill continues and is set to be completed in 2024.
Comment: How engineering innovations are transforming washing machine accessibility
I wonder if Mr Sawhney has considered a sit-on version, with pedals?