British Steel said on Thursday it will consult on the potential closure of two blast furnaces and steelmaking operations, as well as a proposed reduction in the capacity of its steel rolling mill in Scunthorpe.

British Steel said it would not revisit plans to build an electric arc furnace (EAF) at one of its plants, even though it was consulting on the closure of an alternative site for the machinery.

British Steel says it is planning to close its two blast furnaces and steelmaking operations in the north England town of Scunthorpe, after its Chinese owner Jingye failed to agree a rescue package with the U.