UP TO 2,700 British Steel jobs were put at risk as the company began consulting its workforce today on closing its two blast furnaces at Scunthorpe in June.

Community, the GMB and Unite urged the government to help secure the future of British Steel following the “devastating” announcement.

The company’s Chinese owner, Jingye, said that negotiations for capital investment from the government in two new electric arc furnaces (EAFs) had failed.

Blast furnaces and steelmaking operations are no longer financially sustainable due to highly challenging market conditions, the imposition of tariffs, and higher environmental costs relating to the production of high-carbon steel, it said.

Unions published a report last month on how to decarbonise steelmaking at British Steel.

The plan said an additional £200 million of government support would be needed to mitigate carbon costs while two new EAFs are constructed on site without closing the furnaces.

Community general secretary Roy Rickhuss said: “This is a dark day for our steel industry and for our country.

“Crucially, Jingye have not ruled out retaining the blast furnaces during a transition to low-carbon steelmaking if they can secure the backing of the government.

“At this critical juncture, the Labour government must do everything it can to secure the future of steelmaking at Scunthorpe — it would be unthinkable for them to let it die on their watch.”

Unite general secretary Sharon Graham said: “This announcement of job losses is quite simply a disgrace.

“British Steel is guilty of trying to hold the government to ransom, while using its dedicated workforce as pawns.

“In discussions with Unite, the government has clearly moved and has made an offer to invest heavily in British Steel.

“This offer comes with long-term job guarantees, anything less would be a complete misuse of taxpayers’ money.

“British Steel now needs to make the necessary commitments.”

GMB national officer Charlotte Brumpton-Childs said: “We urge Jingye and the government to do everything in their power to save this vital domestic industry.”

Business and Trade Secretary Jonathan Reynolds said that government will continue “working tirelessly to reach an agreement with the company’s owners to secure its future and protect taxpayers’ money.

“We’ve committed up to £2.5 billion to rebuild the sector and will soon publish a Plan for Steel setting out how we can achieve a sustainable future for the workforce, industry and local communities.”