Union officials ‘hopeful’ of Scunthorpe steel materials delivery within 48 hours
Union officials are “hopeful” that the materials needed to keep furnaces burning at the Scunthorpe steel plant will be delivered within the next 48 hours.
It comes as British Steel has appointed interim executives as efforts continue to secure its future.
British Steel announced Allan Bell as interim chief executive officer and Lisa Coulson as interim chief commercial officer with immediate effect on Monday.
Staff at the firm and civil servants are expected to spend Monday trying to prevent the permanent shutdown of Britain’s last steel-making plant.
The company faces a race to ensure it has enough new materials – such as coking coal and iron ore – to keep the North Lincolnshire site running.
Andy Prendergast, national secretary at the GMB union told the PA news agency: “Where we are at the moment is that we’re confident that the deal being done with the raw materials, and the steps being taken will get there on time, and ultimately that has the potential to preserve the future for the plant.
“There still needs to be… a deal to be done for the future, whether that’s our preference – which is nationalisation of what is a key national asset – or whether that’s a genuine private investor who’s willing to come in and put the money.
“I think for us the key thing is that we keep this plant going and keep virgin steel-making capacity in the UK.”
Asked about an expected timeline for getting the material in, Mr Prendergast said: “We’re being told it’s going to come in good time, so we’re… hopeful that it’s the next 48 hours but we haven’t had confirmation of that.
“However, we believe the steps taken would be meaningless if there weren’t the logistics in place to get it to the plant on time”.
Jingye, British Steel’s Chinese owners, had stopped ordering raw materials and had begun selling off existing supplies, the Business Secretary Jonathan Reynolds has said, sparking concerns the plant could close within days.
The Government intervened on Saturday after emergency legislation was passed in Parliament.
The Department for Business and Trade said overnight that officials, along with British Steel staff, will spend the coming hours working to bring nearby materials on to site as well as ensuring that staff continue to get paid.
The Chinese owners Jingye unfortunately were seen to be working against the business, if that’s fair to say, that they weren’t ordering raw materials
Roy Rickhuss, the general secretary of the Community trade union, which represents steelworkers, accused Jingye of “working against the business”.
He told the Today programme on BBC Radio 4: “The Chinese owners Jingye unfortunately were seen to be working against the business, if that’s fair to say, that they weren’t ordering raw materials.”
Meanwhile, the Chinese embassy has said they are following the developments over the Scunthorpe plant “closely”, and that it is an “objective fact” that British steel firms have faced difficulties.
An embassy spokesperson said late on Sunday night: “We have urged the British side to act in accordance with the principles of fairness, impartiality and non-discrimination and to make sure the legitimate rights and interests of the Chinese company be protected.
“It is an objective fact that British steel companies have generally encountered difficulties in recent years. It is hoped that the British government will actively seek negotiation with the relevant Chinese company to find a solution acceptable to all parties.”
Dozens of businesses, including Tata and Rainham Steel, have rallied to help British Steel with offers of managerial support and raw materials following the Government’s takeover.