Union chiefs urge for talks to save thousands of North East jobs

Three major financial backers behind Redcar steel works are likely to reject a request to reschedule payments of about £510m which are due next Wednesday, September 30, The Bangkok Post said this morning.

Top United Kingdom steelmakers have called on the government to increase help to the sector after SSI United Kingdom , the country’s second largest steelmaker, halted production last week, calling into question its future and putting thousands of jobs at risk.

SSI bought the Redcar plant in northeast England in 2011.

Steel unions have issued their strongest statement yet in an ongoing press conference, urging the government and SSI to take urgent action to save the Teesside steelworks. He has also been in talks with investors over selling them SSI United Kingdom , or a stake in the business, but nothing has been finalised.

Cornelius Louwrens, SSI UK’s chief operating officer, said: “It is with great regret that we have had to make this announcement and we are deeply aware of the concern it will give to our employees and their families”.

SSI added that it was preparing to “systematically reduce” production immediately. If that means the government has to step in and assist then so be it.

The problems with the UK’s steel industry are thought to have been caused by China and its vast stockpile of steel. “Steelworkers on Teesside and the whole of British industry need immediate action”.

“The Government has argued that European Union state aid rules are preventing it from intervening”.

The calls came as United Kingdom unions said that if SSI United Kingdom fails it could cost taxpayers hundreds of millions of pounds in redundancy and clean-up costs.

It said it was “determined to create a safe, successful and sustainable business”, but it has run into financial problems amid a collapse in demand for steel. “It’s in the interests of all parties to find a solution to the current difficulties”.