British Steel is temporarily stopping production at one of its Teesside plants for the second time this year. The Skinningrove facility will be shut down for three weeks and 300 employees will be furloughed as of June 13, the company noted.
The special profiles business halted output for three weeks earlier in 2020, with workers resuming employment on April 27. However, according to the company, difficult market conditions persist due to COVID-19, which have, in turn, impacted trading and steel product creation for the Skinningrove plant. The company’s order book and stocks remain solid despite the slowdown in business, British Steel said in a statement.
A skeletal staff will remain on site during the shutdown. Iron and steel production will also be sustained by the company’s two blast furnaces that will continue operating during the pause. British Steel’s Lackenby operation at its Teesside beam mill that employs about 400 people, will not be affected.
A company spokesperson said production will restart as soon as possible and stressed this is only a temporary move. Trading should continue as usual as the economy reopens along with a return in demand, especially within the rail and construction markets.
British Steel is owned by Jingye Group since March 2020 and produces about 3mn mt of steel per annum throughout Europe and the UK.