British Steel, owned by China's Jingye Group, said it has asked the government for around $360 million in funding to keep its furnaces running in northern England.
Ministers have indicated that if the furnaces are closed, thousands of industrial jobs will be lost in northern England. In addition, the collapse of British Steel could result in the government costing up to £1 billion in decommissioning and other liabilities.
In addition, local demand for steel will increase by 20% due to infrastructure projects, so the shutdown could leave domestic production insufficient and the local market will have no choice but to rely on sources from other countries.
Senior officials in the United Kingdom government are reportedly calling on the UK Treasury to provide about $360 million in British Steel funding to keep the company running its furnaces in northern England.