LONDON, Nov 6 (Reuters) - British Steel, the country's second biggest steelmaker owned by China's Jingye Group, said talks with Britain were ongoing as it seeks financial support for its 1.25 billion pound ($1.55 billion) plan to decarbonise its facilities.

British Steel wants to install electric arc furnaces at its sites in Scunthorpe and Teesside to replace its ageing blast furnaces, an expensive project which is likely to result in job losses but make the steel-making process less carbon intensive.

"We remain in talks with the government," British Steel CEO and President Xijun Cao said in a statement on Monday.

The company, which wants the new furnaces operational by 2025, also said it has started talks with trade unions about its future plans amid media reports that up to 2,000 jobs could be lost because the electric arc furnaces require fewer workers.

Britain has so far offered British Steel more than 300 million pounds to help support the transition to electric arc furnaces.

"It is for British Steel to manage commercial decisions for the future of the company, and we cannot comment on ongoing commercial negotiations beyond that," a spokesman for Britain's business and trade ministry said. ($1 = 0.8070 pounds) (Reporting by Sarah Young, additional reporting by Kylie MacLellan; editing by Paul Sandle)