'We need to accept the cost': future of British Steel unclear as bills for government build up

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OrbitNova

UK's steel industry teeters on brink of collapse as cost of propping up British Steel soars.

The UK steel industry has been in a state of crisis for years, but the current situation at British Steel is particularly dire. The company was on the verge of collapse last year when its Chinese owner announced plans to shut down the Scunthorpe plant. However, the government stepped in with emergency legislation to take control of the facility, saving thousands of jobs.

But now, the cost of propping up British Steel has skyrocketed. The latest bill for the government stands at over £1.2m per day, and experts warn that this figure could rise even further. Jon Carruthers-Green, a steel market analyst, said that "in the short term, they are going to cost, so that £350m number is going to get bigger."

The root cause of the problem is British Steel's reliance on coal-fired blast furnaces, which are being phased out in favor of cleaner and more efficient electric arc furnaces (EAFs). However, this transition will require significant investment and could result in job losses.

The government has promised to support British Steel and the steel industry as a whole, but it remains unclear what the long-term future holds for the company. One possible option is for the UK government to invest in EAFs at the Scunthorpe site, which would make British Steel more resilient in the face of global trade tensions.

However, this plan comes with significant costs and challenges. The transition to EAFs could result in job losses, and there are concerns about the feasibility of making iron from scratch using EAFs without importing scrap steel.

One possible buyer has emerged in the form of Michael Flacks, a US-based retail investor who has declared interest in acquiring British Steel. However, it is unclear what advantages this would bring or whether he would be able to overcome the significant challenges facing the company.

In any event, officials warn that finding a quick resolution to the crisis at British Steel is unlikely. It could take four or five years before the company is sold or becomes self-sufficient once again.

The situation highlights the need for the government to accept the cost of propping up British Steel and invest in the steel industry's future. As one person close to the situation said, "it's a heck of a thing to take on – which they knew." The fate of Scunthorpe hangs precariously in the balance, with thousands of jobs at risk unless a solution is found soon.
 
I'm not sure what's more concerning - the fact that British Steel is struggling to stay afloat or the £1.2m per day bill we're footing the bill for 🤑🤯. It sounds like the company is being propped up with government money, but where are the long-term solutions? We need concrete plans to transition away from coal-fired blast furnaces and invest in electric arc furnaces (EAFs). How much is this going to cost and when can we expect it to pay off? 🤔 I'd like to see some actual figures and projections rather than just vague promises. Can someone please provide some credible sources on the economic impact of this crisis and what's at stake for workers in Scunthorpe? 💼
 
the british steel crisis is a real head-scratcher 🤔... it seems like no matter what the government does, costs just keep going up and the outlook isn't looking great for scunthorpe plant. £1.2m per day is a lot of cash, especially when you consider that's just to prop up british steel till something else comes along. it's also fair to say that the transition to eaf's might be a bit more complicated than initially thought... i mean, we all know the environmental benefits of going electric, but how do we make iron from scratch without scrap steel? that's a tough one 🤯
 
I'm getting really worried about the future of the UK steel industry 😬. I mean, we all know that it's been struggling for years, but this latest crisis is just too much to handle. The idea that the government is having to foot the bill for £1.2m per day just shows how dire things are. And let's be real, £350m is just a number - it's not going to magically make itself disappear 💸.

I don't think we can keep relying on emergency measures and bailouts forever. We need some real investment in the industry to help it transition to cleaner technologies and become more competitive again. I mean, have you seen those electric arc furnaces? They're the future of steel production, but only if we can make them work without losing thousands of jobs 🤔.

I'm also intrigued by this US-based investor who's interested in buying British Steel. It could be a game-changer, but we need to know what his plans are and whether he's got any experience with the industry 💡. One thing for sure is that something needs to happen soon - thousands of jobs are on the line here 🕰️.
 
I feel really bad for the people affected by this 🤕 it's like they're walking on eggshells every day not knowing what's gonna happen next. The cost is just crazy £1.2m a day that's insane 💸 and I can see why experts are worried it could get even worse.

I think the government needs to take responsibility for this situation 🙏 they promised to support British Steel but now we're still stuck in limbo 🤔. Maybe investing in those electric arc furnaces is the way forward, but it's gonna be tough 💪 and I don't know if it'll even work out.

It's all just so frustrating ⚡️ thousands of jobs are at risk because of this and nobody seems to have a clear plan 😩. Can we please just find a solution already? 🙏
 
Wow 🤯 This crisis at British Steel is getting out of hand! I mean, £1.2m per day is just insane 💸. It's like they're throwing money at it hoping something sticks, but what if it doesn't? The UK steel industry has been struggling for years and now this is the straw that breaks the camel's back 🌪️.

Interesting how Michael Flacks comes into the picture, though 🤔. I'm not sure what his intentions are or how much of a chance he has of saving the company. It seems like the UK government is stuck in limbo, unsure of what to do next 🔄. We'll just have to wait and see if they can find a way to revive British Steel before it's too late ⏰
 
🤕💸 this steel industry crisis is getting out of hand, like what's going on at British Steel can't be fixed till we switch to electric arc furnaces, it's gonna cost so much more than they're paying now 🤑 and let's not forget the thousands of jobs that are at stake 🤯, I guess the UK government should just accept the bill and invest in a new future for steel production instead of keeping throwing money at it 💸🕰️
 
🤔 This news is really making me think about the fragility of industries and economies... I mean, one day the company's Chinese owner was on the verge of shutting down the plant, but now we're facing a whole new set of problems. £1.2m per day is a staggering amount, and it's got everyone wondering how this is going to be sustained in the long term.

It's also got me thinking about the role of governments in supporting industries that are struggling... do they have a responsibility to bail out companies that are on the brink of collapse, or should they just let them go through the process of restructuring and reorganizing? And what does this say about our society if we're so willing to support one company over another?

And then there's the question of innovation and progress... do we really want to stick with coal-fired blast furnaces when electric arc furnaces are becoming the norm? It's a trade-off between cost savings and environmental sustainability. 🌎

It feels like there's no easy answer here, but that's what makes this situation so interesting to me – it's a complex web of economic, social, and environmental factors all intertwined. 💡
 
man this steel industry crisis is getting outta hand 🤯 they gotta help british steel or else hundreds of ppl will lose their jobs it's not just about the money tho it's about people's livelihoods what if michael flacks comes in and saves the day? idk if it's a good idea but at least its something 🤔 maybe the gov should invest in them new electric arc furnaces instead of propping up british steel they're being phased out for a reason lol anyway, gotta keep fingers crossed for scunthorpe 💕
 
I THINK THE UK GOVERNMENT NEEDS TO GET ITS ACT TOGETHER AND FIND A SOLUTION FOR BRITISH STEEL ASAP!!! £1.2 MILLION PER DAY IS JUST MERE BLOOD MONEY!!! THEY CAN'T JUST KEEP DRIPPING WATER INTO A HOLE THAT'S GONNA SUCK EVERYTHING IN!!!

I MEAN, COME ON, WHO DOESN'T KNOW THAT COAL-FIRED BLAST FURNACES ARE THE OLD WAY?! IT'S TIME TO TRANSITION TO ELECTRIC ARC FURNACES ALREADY!!! AND YES, THERE'LL BE CHANGES, BUT WE CAN'T JUST SIT AROUND AND WAIT FOR THINGS TO GET WORSE!!!

THE FACT THAT MICHAEL FLACKS IS TAKING AN INTEREST IN ACQUIRING BRITISH STEEL IS LIKE, YEAH OKAY, THAT'S GREAT, BUT WHAT ABOUT THE LONG-TERM PLAN?! WE NEED SOMEONE WHO CAN SEE BEYOND 5 YEARS AND GET THE UK STEEL INDUSTRY BACK ON ITS FEET!!!
 
🤔 this is crazy man, like, what if we just can't afford it anymore? like, what's the point of propping up british steel if we're gonna end up bankrupt 🤑? and don't even get me started on these £1.2m daily bills... that's like, insane 💸. I mean i get it, the industry is struggling but can't they just find a way to be more efficient or something? this whole eaf thing sounds like a mess 🤯. michael flacks comes in and offers to buy them out but what makes him think he can turn it around? seems like a long shot to me 🚫. anyway, i guess we'll just have to wait and see how this all plays out...
 
🤕 this whole thing is super concerning - the UK steel industry has been struggling for years and now it's literally on the brink of collapse 🌉 british steel is basically just propping itself up with £1.2m a day 🤑 which is insane, and nobody knows how long they can keep doing that 💸 and then there's the issue of them having to switch to electric arc furnaces - i mean, it's good for the environment and all but that transition period must be so costly 💸 and who knows if british steel even wants to make it through this 🤔
 
😐 I'm so over this latest steel industry drama 🤯. It's like, we already know the UK's steel industry is struggling, but come on, £1.2m per day? That's just crazy 💸. And what's with all these emergency bills and short-term fixes? When are they going to think about long-term sustainability here? 🤔

And don't even get me started on the plans to switch to electric arc furnaces (EAFs) 🚨. I mean, I get it, we need cleaner energy and all that jazz, but what about the jobs? Thousands of people's livelihoods are at risk because of some fancy new tech 🤖.

It's like the government is just throwing money at the problem without having a solid plan in place 💸. And now they're considering selling the company to some random investor (Michael Flacks?) who hasn't even shown a clear vision for what he'd do with it 🤑.

I'm all for supporting British Steel, but we need to think about how to make them resilient in the long run, not just keep throwing cash at the problem 💸. Four or five years is a looong time, and I'm not sure even the best plans can guarantee success 🤞.
 
🤔 The UK steel industry's problems run deep and it's not going away anytime soon 🌪️. The cost of keeping British Steel afloat has skyrocketed to over £1.2m per day 💸, and that number could keep rising 📈. It's clear that the government can't just leave this to fate - they need to step up and invest in the industry's future 💰.

The main issue is the transition from coal-fired blast furnaces to cleaner electric arc furnaces (EAFs), which would make British Steel more efficient but also more expensive 🔄. The question is, will it be worth it? 🤝 I think it's a tough call, but if we want to stay competitive on the global stage, we need to invest in our steel industry 💪.

The fact that Michael Flacks has emerged as a potential buyer might bring some hope, but let's not forget that this is just one person and their resources 🤔. We need a long-term plan that considers all the challenges facing British Steel, from job losses to feasibility issues 🔍.

Finding a quick fix for the crisis won't happen overnight ⏰. It could take years before the company is sold or becomes self-sufficient again ⏱️. That's why I think it's crucial for the government to accept the cost of propping up British Steel and invest in its future 💻. The fate of Scunthorpe hangs in the balance, and we can't afford to wait 🕰️.
 
man this is just crazy... £1.2m a day is insane!!! 🤑 how can you put a price on something as vital as steel production? it's like they're throwing money into a sinkhole over there. and what about the jobs, thousands are at risk 🤕 i feel for those guys who've been working hard just to keep the industry afloat. we need some solid answers from the government ASAP 💬 but honestly it sounds like this crisis is going to be a long-term thing... 4 or 5 years is a looong time to wait for someone to come and save the day 🕰️
 
🤯 I mean, what's up with this British Steel drama? It's like they're trying to outdo each other in a game of "Who Can Run Out of Money Faster" 😂. First, it's on the verge of collapse, then the government jumps in to save the day (and our tax dollars 💸), and now we're up to £1.2m per day? That's like me buying a new Xbox every 4 days 🎮... and I'm not even trying that hard 😂. Can someone please just give them a map and say "Hey, you know what would be good for the environment? Electric arc furnaces"? 🌞🔩 At least then we can have a proper conversation about how to save Scunthorpe's jobs instead of wondering if they'll actually make it through this financial storm ⛈️.
 
I just saw this thread and I'm still trying to wrap my head around it 🤯. It's like, the UK government stepped in last year to save thousands of jobs, but now they're facing a huge bill every day? £1.2m is crazy! 💸 I don't think we can keep throwing money at British Steel without thinking about the long-term plan for the industry. Maybe it's time for them to invest in those new electric arc furnaces instead of just propping up the old coal-fired ones? It sounds like they're playing catch-up and it's gonna be a tough road ahead 🚧.
 
🤔 so the government is basically throwing £1.2m a day into a sinking ship and expecting it to magically recover? 🤑 that's some serious public money on the line here. i need to see where this cash is going and what specific steps are being taken to turn british steel around. is there any concrete plan in place for reducing costs or increasing efficiency? seems like we're just delaying the inevitable here. 🕰️ four to five years is a long time to be propping up a company with no clear exit strategy. what's the government's endgame here?
 
I'm all for supporting British Steel 🤔, but £1.2m per day is just insane 💸! I mean, I get that they need help to stay afloat, but this cost is crippling. They're already on the brink of collapse, and now we're throwing more money at it? It's like throwing good money after bad 🤑.

I think the government needs to take a closer look at their plans for supporting British Steel. Investing in EAFs at the Scunthorpe site could be a good move, but it's not going to be easy 💪. Job losses are a reality, and we need to be honest about that. It's also concerning that they're relying on a US-based investor with no clear track record 🤷‍♂️.

I hope the government can find a way to support British Steel without breaking the bank 💸. Four or five years is a long time to wait for a solution, and thousands of jobs are at risk 😬. We need a plan that's going to get us out of this crisis ASAP 🚨.
 
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