Chinese Owners Slash Jobs At British Steel

Unions have warned on the future of UK steelmaking after British Steel announced it will shut its coking ovens in Scunthorpe and cut up to 260 jobs.

Photo Insert: Now Chinese-owned, British Steel blamed an "unprecedented" rise in energy costs and demands to be greener as the reasons for the layoffs.

Now Chinese-owned, British Steel blamed an "unprecedented" rise in energy costs and demands to be greener as the reasons for the layoffs, Michael Race reported for BBC News.

The biggest steelworkers' union said the cuts could have a "catastrophic impact" on steel production in the UK.

Coking ovens turn coal into coke which burns at the higher temperature needed for furnaces used in steel production. The closure of the ovens at its Scunthorpe headquarters, which means British Steel will import coke, has been seen as a concerning indicator about the health and future of the UK steel industry.

The government said the decision by British Steel was "very disappointing" while negotiations were ongoing with the sector over funding support.

British Steel currently employs around 4,200 workers in the UK and is owned by the Chinese company Jingye. Making steel requires a lot of energy, and with prices soaring in recent months, the costs of making the metal have also gone up.

The company said its energy bills and carbon-offsetting costs increased by £190 million last year and "decisive action" was needed. It added that its coke ovens were "reaching the end of their operational life" and that closing them would "bring environmental benefits including reductions in emissions to air and water."

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