Unlock the editor’s summary for free
Roula Khalaf, editor of the FT, selects her favorite stories in this weekly newsletter.
The Chinese owner of British Steel has rejected a life line of £ 500 million of the United Kingdom government, which increases the fears of thousands of jobs in the steel manufacturer.
A letter sent by the Government to Jingye on Monday had offered money to hold the business and help him change the greener production, after almost two years of rescue conversations between the officials of the United Kingdom and the company.
However, Jingye sent a letter to the government on Wednesday in which he rejected the approach, according to people familiar with the situation.
The unions fear that the company, which uses 4,000 people in sites, including its Scunthorpe flagship plant in Lincolnshire, could start consultations about dismissals as early as Thursday.
Sarah Jones, Minister of Energy, told Wednesday to the Business Committee of the House of Commons that the offer had been rejected, but the government “still spoke a lot with British steel, every day.”
Jones said “there was no deadline” in conversations with the company.
British Steel did not immediately respond to a request for comments.
The business operates in Scunthorpe the last two explosions in the United Kingdom after Tata Steel of Indian property closed his last in Port Talbot, South Wales, in September.
The ministers expected to replicate an agreement that arrived last year with Tata Steel in which they provided £ 500 million of taxpayers support to help the company change to the creation of greener steel.
The government has compromised up to £ 2.5 billion towards the steel industry to help reduce its carbon footprint and meet the zero net objectives of the United Kingdom by 2050.
Last month, the unions presented a plan to keep British steel underpants open until two less carbon intensive electric arc equivalents were operational.
The unions that the rapid closure of the high ovens will result in the loss of up to 2,000 jobs have been concerned.
However, as part of the plan, the unions wanted the government to provide an additional £ 200 million to help mitigate the expected carbon costs associated with the maintenance of under operation.
The union expectations of an offer from the government superior to Jingye last week faded after the treasure rejected more money for more money, according to two people familiar with the situation.
Jones told parliamentarians that the government’s preference would be that the High Horn of Scunthorpe continue at least temporarily.
Liam Byrne, Labor President of the Business Committee, said it was “deeply worrying news.”
“In a moment of war in Europe, the increase in global tension and economic uncertainty, we need more resilience, no less … We need a baked steel made here for us, for us,” he added.
“The ministers must now respond and respond quickly: if this treatment is not, what? If not now, when? And if not here, then, where will we make Great Britain steel still need?”
