British Steel looks set to abandon plans for a return to Teesside, ending hopes for hundreds of jobs to come to the North East.
The loss-making company, which has been in talks over a Government-backed rescue, had planned to build a ‘green steel’ electric arc furnace in the region and another at its main site in Scunthorpe.
It would have marked a return of the industry to an area devastated by Redcar’s steelworks closing in 2015.
But now both furnaces will be built in Scunthorpe, The Sunday Times reported, under plans being discussed with Labour ministers.
Disappointment: Both furnaces will be built in Scunthorpe under plans being discussed with Labour ministers
British Steel has been in talks with the Government for taxpayer funding to replace its blast furnaces with electric ones. A spokesman confirmed the talks but said ‘no final decisions’ had been made.
A spokesman for the Department of Business said it was working to secure a ‘green steel transition’.
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