Reynolds says job changes may be needed to ensure Scunthorpe steel plant future

Employment roles at Scunthorpe steelworks may have to change to ensure the plant has a long-term future, the Business Secretary has said, after he was pressed on whether jobs could be lost.

Jonathan Reynolds said the Government is looking for a private sector partner to help “transform” the future of the British Steel site, days after ministers were granted emergency powers to keep the plant’s two blast furnaces running.

In March, British Steel’s Chinese owner, Jingye, announced it would close the remaining furnaces at Scunthorpe, which would lead to the loss of 2,700 jobs. It came months after the closure of Tata Steel’s plant in Port Talbot, South Wales, with thousands of workers being made redundant.

Since then there have been fears that the blast furnaces at Scunthorpe could be left to cool if Jingye did not order enough supplies to keep them running.

It could have led to the end of virgin steelmaking in the UK, with Scunthorpe responsible for producing steel for construction and the vast majority of the country’s railway tracks.

The Government passed emergency powers in Parliament on Saturday to keep the furnaces running.

These blast furnaces have given this country nearly a century of service in one case, so they know they need the future and that might be a different model, different technology

Speaking at the port of Immingham in north-east Lincolnshire, where coking coal arrived on Tuesday, Mr Reynolds said there could be a “different employment footprint” at the steelworks in its long-term future.

He said: “What we need for the long-term future of British Steel is that private sector partner to work with us as a Government on a transformation programme.

“That might be new technology, new facilities, that might have a different employment footprint. The staff here absolutely know that, they know they need a long-term future.

“These blast furnaces have given this country nearly a century of service in one case, so they know they need the future and that might be a different model, different technology.

“What they didn’t want was the unplanned, uncontrolled shutdown of the blast furnaces with thousands of job losses and no plan in place for the future.

“And by what we’ve been able to do, working with the brilliant team here at British Steel, is secure the possibility of that better future – and I for one am confident that we’ve made the right decision to support the people here.”

Unions including the GMB, Community and TSSA have welcomed the Government’s action to keep Scunthorpe open.

The GMB’s national officer for steel, Charlotte Brumpton-Childs, said there has been a “sigh of relief” at the delivery of coking coal, which will allow the Scunthorpe blast furnaces to continue functioning.

She said: “It’s a huge step. When we were stood here talking last week, there was real uncertainty about whether we would be able to maintain the blast furnaces beyond May.

“I think the whole workforce here are breathing a huge sigh of relief seeing that coke come off the shipment.”