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The Chinese owner of British Steel has rejected a £ 500m lifestyle from the United Kingdom, increasing the fear of thousands of work in the steel manufacturer.
A letter sent Jingye on Monday had offered money to keep the business and help him move on to the greener production after nearly two years of rescue talks between UK officials and the company.
However, Jingye sent a letter to the government on Wednesday in which he rejected the approach, according to people known to the situation.
Trade unions are afraid that the company, which employs 4,000 people in countries, including its Funtthorpe factory in Lincolnshire, may start notifying surpluses as early as Thursday.
Sarah Jones, the Energy Minister, told the Business Election Committee of the Municipal Chamber of Municipalities on Wednesday that the bid was rejected, but that the government is “still talking to British Steel every day”.
Jones told MPs on the committee that there was no “deadline” for talks with the company.
The British Stelellic did not immediately respond to a comment request.
Business operates the last two ovens of the UK explosion after Indian -owned Tata Steel closed a last one at Port Talbot, South Wales in September.
Ministers had hoped to repeat an agreement they hit last year with Tata Steel in which they provided £ 500m support from taxpayer to help the company move on to Grener Steelmking.
The labor government has engaged up to 2.5 billion £ steel industry to help it reduce its carbon trail and meet the Net Zero Objectives in the UK by 2050.
Last month’s steel unions set up a plan to keep the British steel explosion ovens open while two less carbon intensity ovens are raising and functioning.
The unions are worried that the rapid closure of the explosion furnaces will result in the loss of up to 2,000 jobs within months.
However, as part of the plan, trade unions wanted the government to provide an additional £ 200m to help mitigate the expected carbon costs associated with holding explosion ovens.
The government’s preference, she added, would be for the explosion ovens to continue at least temporarily.
Liam Byrne, chairman of the Business Election Committee, said it was “deeply disturbing news”.
“In a time of war in Europe, increasing global tension and economic uncertainty, we need more resistance, no less … We need the explosion furnace steel made here by us, for us,” the Labor MP said.
“Ministers now have to respond and respond quickly: if not this agreement, then what? If not now, when? And if not here, then where will we make steel Britain still need?”
