British Steel has announced the suspension of its redundancy consultation affecting up to 2,700 employees, following successful efforts to stabilize raw material supply for its two blast furnaces. All operations, including the Scunthorpe rod mill, will continue as normal.
The decision comes after the company formally withdrew its HR1 form, used to notify the UK government of large-scale redundancies, submitted on 27 March 2025.
This move follows the UK government’s temporary takeover of British Steel under the Steel Special Measures Act, passed on 12 April 2025, amid fears that current owner Jingye Group was preparing to shut down primary steelmaking.
British Steel, which employs about 3,500 workers in Scunthorpe, the site of the UK’s last blast furnaces, had faced growing uncertainty after Jingye failed to secure funding for a green transition. Reports indicated the company had stopped raw material orders and started liquidating stock, raising concerns of closure.
Jingye maintains the Scunthorpe plant is losing GBP 700,000 (USD 935,354) daily due to weak market conditions and increasing environmental costs.
1 USD / 0.74 GBP