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 is launching a consultation that could see the closure of its two blast furnaces at Scunthorpe, putting up to 2,700 jobs at risk out of a workforce of 3,500. The company said the blast furnaces were "no longer financially sustainable" due to tough market conditions, the imposition of tariffs and higher environmental costs.