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British Steel update on future of Scunthorpe works as unions warn of 'devastating blow to workers and families'

Steel News - Published on Thu, 16 May 2019

Image Source: Grimsby Telegraph
Grimsby Live reported that British Steel has confirmed it is holding "constructive discussions" as it looks for funding to help secure its future. The company, reported to be close to collapse, blamed uncertainty over Brexit for current problems but insisted it was trying to "navigate through" the issues.
The company statement came after reports that the future of steel manufacturing in Scunthorpe was at risk along with thousands of jobs as the company faced a critical shortage of cash.
The reports, leaked to Sky News, said discussions had been held with senior government officials over loans to keep the company buoyant for the coming months.
Steelworkers and unions expressed their shock at the unexpected development after several years of stability at the Scunthorpe plant.
In its statement, British Steel said that "As we have previously commented, the uncertainties around Brexit are posing challenges for all businesses including British Steel, and we are holding constructive discussions with our stakeholders on how to navigate them. Last month the company agreed a short-term bridge facility with government to help it meet its EU emissions obligations, and discussions are continuing about a package of additional support to assist the company address broader Brexit-related issues, whilst continuing with its investment plans."

Scunthorpe's Labour MP Nic Dakin said that "Everybody has rolled their sleeves up to do the right thing and I am trying urgently to speak to ministers to get some confidence into the system but at the moment, they will be as busy as we are. It is important we have a considered response and the worst thing we can do is behave as though things are worse than they are. This is clearly worrying and it is a challenge but the workforce and management have faced many challenges very well.”

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Posted By : Sanju Moirangthem on Thu, 16 May 2019
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