British socialism made it possible for the United Kingdom to be unable to produce steel.

The British steel sector was a world leader in the post-war period, employing more than 300,000 people, but now has only around 40,000 workers, representing just 0.1% of the British economy.

The closure of the Scunthorpe plant would mark a milestone in the disappearance of primary steel production capacity in the UK, leaving the country as the only G7 nation without the ability to produce steel from scratch.

The steel industry in the UK is already facing difficulties due to competition from cheaper products from China and other countries, and the loss of the Scunthorpe plant would affect the UK's ability to manufacture vital steel for key sectors such as transportation, infrastructure, and construction.

British Steel, owned by the Chinese group Jingye, announced on Thursday its intention to close its two blast furnaces and steel production operations in the city of Scunthorpe, in northern England, which would put between 2,000 and 2,700 jobs at risk.

This decision comes after negotiations between Jingye and the UK's socialist government failed, despite the company's efforts to secure a state rescue package.

Unions have urged the British government to intervene and save the company's future, which since its acquisition by Jingye in 2020 has been recording daily losses of around 700,000 pounds (840,000 euros), despite the Chinese group having invested more than 1.2 billion pounds in maintaining operations in Scunthorpe.

British Steel, the second-largest steel producer in the UK, blamed "extremely challenging market conditions", the imposition of tariffs and higher environmental costs related to high-carbon steel production.

The company also said it is conducting consultations with unions on the closure of the blast furnaces and steel production operations, as well as a reduction in rolling mill capacity, with the possibility of closure occurring from June.

This closure would represent the end of 160 years of steel production in Scunthorpe and would affect between 2,000 and 2,700 employees out of the 3,500 the plant has.

Since the start of the crisis, British Steel had requested support from the British government to make a significant capital investment in two new electric arc furnaces (EAF), which would produce fewer carbon emissions.

However, after several months of negotiations, no agreement was reached. Unions published a report last month detailing how steel production at British Steel could be decarbonized, suggesting that the two current blast furnace facilities in Scunthorpe continue operating while the new electric furnaces are built.

This plan would require additional support of 200 million pounds from the government to mitigate carbon costs during the transition period.

The general secretary of the Community union, Roy Rickhuss, called the situation a "dark day" for the steel industry and the country, warning that the closures in Scunthorpe would be a devastating blow to the communities that depend on the industry.

He also urged Jingye and the government to resume negotiations, mentioning that the Chinese company "has not ruled out" the possibility of keeping the current furnaces during a transition to cleaner steel production if they can obtain government backing.

Meanwhile, the UK Secretary of Business and Trade, Jonathan Reynolds, stated that the government "will continue to work tirelessly" to reach an agreement with Jingye. "We have made it clear that there is a bright future for steel production in the UK," he said.

UK Steel, the body representing the industry, warned that the closure of steel operations in Scunthorpe would leave the UK without the capacity to produce steel for rails, heavy sections, and light sections, forcing customers to rely on international supplies, which could compromise national security and critical infrastructure.

Despite British Steel's economic losses, the British government has offered a 500 million pound rescue package, which was rejected by Jingye.

The Chinese company requested additional support of 1 billion pounds to fund the transition to electric arc furnaces, whose construction would cost more than 2 billion pounds.

The government, meanwhile, has proposed a paltry investment to carry out the costly modifications that environmental and socialist measures demand from companies in the UK to develop new electric furnace capacity at the Port Talbot plant in Wales, but work is not expected to begin until 2027.

In case no agreement is reached with Jingye, some unions have urged the government to nationalize British Steel.

Alasdair McDiarmid, assistant general secretary of the Community union, stated that the closure of Scunthorpe would endanger the UK's national security, as steel is crucial for defense, infrastructure construction, and the economy in general.

He also emphasized that if the government doesn't intervene, the UK would become the only G7 country without the capacity to produce virgin steel, which would be an unacceptable situation, especially in times of global insecurity.

The UK's Energy Minister, Sarah Jones, also highlighted the strategic importance of steel, noting that Russia has bombed steel plants during military conflicts due to the importance of steel for defense and infrastructure.