Redcar steel plant owner SSI goes into liquidation

Thai owners SSI announced 1,700 jobs will go at the site amid falling global steel prices, causing a huge blow to the Teesside economy.

Industry body UK Steel says firms face a ideal storm of problems – crippling electricity prices, cheap Chinese imports and a strong pound hitting exports – and little help from a slow moving government.

The money from the government includes funding for workers to train at local colleges and help them start up their own businesses.

Business secretary Sajid Javid has pledged an £80m support package for the 1,700 workers who will lose their jobs.

According to the government, state aid laws from the European Commission would prevent it from taking the action to bailout the unprofitable business.

“On the basis of the limited business case it was given, the government has no confidence that this is a realistic proposal for taxpayers to support”, it said.

“The government says, “we can’t give you the full package because of state aid rules”.

On Friday, the Thai parent company was granted an application to wind up its United Kingdom arm.

The closure of the Redcar plant, located near the industrial town of Middlesbrough, puts thousands of jobs indirectly related to steelmaking at risk in an economically deprived region of Britain.

Roy Rickhuss, general secretary of the Community trade union which is representing numerous SSI United Kingdom workers, said: “This is, of course, yet further devastating news for the workforce, their families and the community”.

“SSI have played fast and loose with us for weeks and months and the Government has got to get control”.

If you work directly within the industry or at a related supply-chain company then you have every right to be concerned over what the future may hold.

“The Government’s responsibility has not ended with the announcement of this support package”.

“We will be seeking an urgent meeting with PwC”, a spokesman for the union Community said.

“We will want the Government and the liquidator to involve all interested parties who may wish to acquire the site and speak to them to save as much of the site as possible”.

Ms Eagle added that she and shadow chancellor John McDonnell would travel to Teeside on Monday “to meet Anna Turley and other Teesside Labour MPs, to listen to the steelworkers and their families and show our support”.

The British government has acknowledged that the steel sector is in crisis, and pledged to talk to China, which produces half the world’s steel, about concerns it is flooding the market with products priced below fair value.