Crisis talks over Scunthorpe furnaces end without deal

Crisis talks between the government and the Chinese owner of British Steel ended yesterday afternoon with no deal in place, as the firm's Scunthorpe plant faces a race against time to secure the raw materials needed to keep its blast furnaces running.

- Rob Davies

Jingye, which promised a "new chapter" in UK steelmaking when it rescued British Steel in 2020, said last month the site's two blast furnaces were no longer financially sustainable, raising fears for its 2,700 workers.

The government has said it is prepared to nationalise the company if necessary, although a cabinet minister claimed yesterday morning that a commercial solution, thought to include taxpayer-funded support, was "within sight".

But negotiations are set to continue, after meetings in Scunthorpe involving government officials, Jingye and trade unions ended without a deal being agreed.

One source familiar with the talks described them as "strained" and warned that the clock was ticking to reach a deal, due to a looming raw material supply crunch.

A second source said British Steel is running out of time to secure coking coal and iron pellets to maintain operations at the two furnaces, nicknamed Queen Anne and Queen Bess.