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.

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.