LONDON — British Steel said Thursday that it is planning to close its two blast furnaces and steelmaking operations in the northern England town of Scunthorpe, after its Chinese owner Jingye failed to agree to a rescue package with the U.K. government.

Unions called on the government to help secure the future of the company, which Jingye said is suffering daily losses of around $900,000 despite the Chinese firm investing more than $1.6 billion to maintain operations since its takeover of British Steel — the U.K.’s second-biggest steelmaker — in 2020.

British Steel said it is consulting with unions over the decision to close the Scunthorpe plant and reduce rolling mill capacity, potentially as early as June.

Between 2,000 to 2,700 jobs are potentially at risk. — Associated Press