The potential cuts, which amount to almost half of the Scunthorpe-based firm’s 4,500 workforce, would not only be a cost-saving measure, but are also an indirect result of the company’s ambition to switch to greener steel production, using electric arc furnaces instead of blast furnaces. If the replacements go ahead, coke oven workers, as well as coal and iron ore importers, would no longer be required.

The cuts, first reported in the Sunday Times, are still under consideration and it is understood that no firm decision on the restructure has been made.

The UK government has offered Jingye Group £300m to support a shift to electric arc furnaces, but negotiations on finalising the deal are understood to be ongoing. The cash was reportedly linked to protecting jobs and a £1bn investment by the Chinese group, but it remains unclear as to how job cuts might affect the government’s investment.

A British Steel spokesman said: “While decarbonization is a major challenge for our business, we’re committed to transforming British Steel into a green and sustainable company providing long-term, skilled and well-paid careers for thousands of employees and many more in our supply chains. As part of our journey to net zero, it is prudent to evaluate different operational scenarios to help us achieve our ambitious goals and we are continuing to assess our options.”

The restructure emerged after British Steel, which was rescued from collapse by Jingye in 2020, admitted in an industry meeting that it was losing up to £30m a month, according to the Mail on Sunday.

The company, while not providing exact figures, admitted it was struggling with a ‘temporary production issue’ and said it was ‘taking decisive action to minimise the potential impact on customer orders’.

It said in a statement: “The matter will be resolved at the earliest opportunity. We are manufacturing iron and steel and continue to work closely with our customers to satisfy demand and ensure they get the high-quality products they require.” 金属展-冶金展-2024广州巨浪国际金属暨冶金工业展览会-巨浪展览-2024 China(Guangzhou)Int’l Metal &Metallurgy Exhibition 2024金属展，2024金属展会，2024金属展览会，2024广州金属展，2024广州金属展会，2024广东金属展，2024广东金属展会，2024中国金属展，2024中国金属展会，2024金属博览会，2024冶金展，2024冶金展会，2024冶金展览会，2024广州冶金展，2024广州冶金展会，2024广东冶金展，2024广东冶金展会，2024中国冶金展，2024中国冶金展会，2024冶金博览，2024钢铁展，2024钢铁展会，2024钢铁展览会，2024广州钢铁展，2024广州钢铁展会，2024广东钢铁展，2024广东钢铁展会，2024中国钢铁展，2024中国钢铁展会，2024钢铁博览会，2024金属冶金展，2024金属冶金展会，2024金属冶金展览会，2023广州金属冶金展，2024广州金属冶金展会，2024广东金属冶金展，2024广东金属冶金展会，2024中国金属冶金展，2024国金属冶金展会，2024金属冶金博览会-steel Industry Exhibition,steel expo, 2024 steel exhibition, 2024 steel expo, China steel exhibition, China steel expo, steel Industry event,steel event, 2024 steel event, China steel event,metal Industry Exhibition,metal expo, 2024 metal exhibition, 2024 metal expo, China metal exhibition, China metal expo, metal Industry event,metal event, 2024 metal event, China metal event,metallurgy Industry Exhibition,metallurgy expo, 2024 metallurgy exhibition, 2024 metallurgy expo, China metallurgy exhibition, China metallurgy expo, metallurgy Industry event,metallurgy event, 2024 metallurgy event, China metallurgy event