British Steel confirmed on Wednesday it will cut 260 jobs and close its Scunthorpe coking ovens, as higher costs and recessionary fears kick in.
It had hinted towards 1,200 layoffs earlier this month, suggesting a proposed £300mln support package from the government was not enough to prop up its current operation and help it transition to cleaner technology.
"Unfortunately, like many other businesses we are reluctantly having to consider cost-cutting in light of the global recession and increased costs," a company spokesperson said.
British Steel chief executive Xifeng Han added: "We have taken action to reduce costs within our control," confirming the cuts, while also suggesting the UK's steel industry was struggling and "uncompetitive".
Chinese owner Jingye bought British Steel out of administration in 2019, with the firm subsequently posting a £140mln loss in 2020.
It has invested around £330mln in British Steel since it took charge, rejecting government support over the conditions, which include job guarantees for 10 years, according to unions.
“Ministers need to decide if they want the UK to have a future in steel or whether they want it to wither and die like so much of our proud manufacturing heritage,” commented GMB Union national officer Charlotte Brumpton-Childs.
She also urged the government and British Steel to remain in talks and try to reach a deal for support.
The closure of the coking ovens, which turn coal into coke for use in blast furnaces, means British Steel will have to resort to importing the fuel, another indicator the sector is “uncompetitive” internationally.