The company is seeking at least £1 billion in support from the UK government, significantly more than the rejected £500 million proposal.

Union leaders have emphasized the importance of retaining the blast furnaces for a transition to low carbon steelmaking, contingent on government support.

An official statement regarding the potential closure of operations in Scunthorpe is expected soon, following discussions held on March 27.

Jingye recently rejected a £500 million government aid offer aimed at supporting the transition to green steel technology, highlighting the ongoing impasse in negotiations.

Steel unions, including Community, GMB, and Unite, have called on the government to intervene and support the steel industry amidst these challenges.

British Steel's CEO, Zengwei An, acknowledged the difficulties faced by employees and their families but emphasized the necessity of the decisions being made under challenging circumstances.

British Steel has announced plans to close its two blast furnaces and steelmaking operations in Scunthorpe due to failed negotiations with its Chinese owner, Jingye, and the UK government.

The company cites challenging market conditions, tariffs, and high environmental costs associated with high-carbon steel production as reasons for the impending closures.

As part of the consultation process, the company is discussing potential reductions in rolling mill capacity, which could impact between 2,000 and 2,700 jobs.

Formal consultations with employees and unions began on March 27, 2025, with the chief executive stating that the decision is necessary due to the current financial climate.

The potential closures could leave the UK as the only G7 country without domestic primary steelmaking capacity, raising national security concerns.

Tees Valley Mayor Ben Houchen has expressed concerns about the implications of losing domestic steel production in a geopolitically unstable world.