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.

Its Chinese owner earlier this week rejected a £500 million ($647 million) public rescue package for the loss-making operations.

Announcing the closures on Thursday, the company said the closures were necessary 'due to highly challenging market conditions, the imposition of tariffs, and higher environmental costs relating to the production of high-carbon steel.