Tata Steel Job Cuts Cast Shadow Over Scunthorpe’s Electric Furnace Plans

The 2,500 job losses at Tata Steel’s Port Talbot plant are casting a long shadow over the government’s new plan for British Steel. Business Secretary Peter Kyle has backed a similar switch to electric arc furnaces (EAFs) for the Scunthorpe site, sparking immediate fears of a repeat of the mass redundancies seen in south Wales.
Steelworkers and their unions are “cautious” of the plans, according to the original text. The switch to EAFs, while greener, is known to require a smaller workforce than traditional blast furnaces. This reality is colliding with the government’s need to secure the plant’s future and meet net-zero targets.
Peter Kyle, who is preparing a new steel strategy, confirmed his support for the transition. The Scunthorpe plant has been under emergency state control since April, when its Chinese owner, Jingye Steel, threatened to close it, putting 2,700 jobs at risk. The EAF plan is seen as a way to secure its long-term operation.
Unions are now fighting a battle on two fronts: jobs and capability. Alasdair McDiarmid of the Community union said that while a “just transition” is welcome, it is also essential to “maintain primary steelmaking capacity.” EAFs melt scrap, meaning the UK would lose its ability to make virgin steel from iron ore.
The government is in a difficult position. It is spending “hundreds of millions” just to keep the plant open, all while navigating a chaotic global market. A potential, but expensive, compromise to save primary steelmaking via a Direct Reduced Iron (DRI) plant is being considered, but its financial viability is in doubt.