Some 25,000 jobs could be at risk amid reports that British Steel is on the brink of collapse if it does not secure an emergency government loan.
Union leaders are set for talks with Whitehall on the future of Britain’s second-largest steel producer after reports that it faces insolvency within days if a deal cannot be struck.
If a deal is not secured at the last-minute talks, it could land in more than 4,000 jobs lost at its Scunthorpe steelworks, and a further 20,000 across its supply chain.
Last week the company said uncertainties around Brexit were posing challenges for the business. It had been trying to secure £75m, but according to Sky News, it is now seeking around £30m.
Unite union said it would be speaking to Business Secretary Greg Clark first thing on Tuesday and urged British Steel owner Greybull to find a solution.
A spokesman said: “We would urge Greybull to reach a deal with the Government. Thousands of jobs depend on the outcome.
“And we will be speaking with the Government first thing in the morning.”
If confirmed, the bankruptcy of the major local employer, dating back 150 years, would be a huge blow to national industry.
British Steel has been contacted for comment.
Last week it announced it had the backing of its key stakeholders and that operations would continue as normal.
The company had asked for a package of support to tackle Brexit-related issues and has been holding talks with the Government, raising fears for the future of the company, which employs more than 4,000 workers, mainly in Scunthorpe.
It said on Thursday: “We are pleased to confirm that we have the required liquidity while we work towards a permanent solution.”