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Redcar Closure Devastating News

Monday, September 28, 2015

Mothballing Iron And Steel Making Is Absolutely Devastating News For Workers And Economy In Redcar

Only the coke ovens will be left unless the UK Government steps in even at this stage and it is not too late for them to do so while the furnaces are still burning says GMB.

GMB commented on the announcement that iron and steel making will be mothballed on the Redcar site. See below copy of SSI statement.

David Hulse, GMB National Officer, said "This is absolutely devastating news for the workers, their families and the economy for the community at Redcar. All that will be left operating will be the coke ovens unless the UK Government steps in even at this stage.  It is not too late for them to do so while the furnaces are still burning.

GMB will do all in our power to press the case for Government to act and to protect our members and their families."

End

Contact:  Steve Readman on 01642 408065 or Dave Hulse 07971 266 156 or Michael Blench on Teesside on 07870 176 748 or GMB press office 07974 251 823 or 07921 289880

Notes to editors

Copy of company statement: Monday 28th September,2015 SSI UK

Further to the announcement made on 18th September with regard to a pause in production, SSI UK regret to announce that after a further evaluation and assessment of the situation facing the Business, it has concluded that they are faced with no other option but to mothball its iron and steel making facilities on Teesside. The Redcar Coke Ovens and the Power Station will continue to operate.

This decision has had to be taken against a continuing background of poor steel trading conditions across the globe and the consequential severe deterioration in steel prices experienced during the course of 2015, together with the view that this is unlikely to change in the short term. We will continue to work with various stakeholders, including Government with the objective of restarting operations at Teesside at some point in the future. As a further consequence of the mothballing, it is proposed to reduce by c1700 employees, including those affected by the mothballing of the South Bank Coke Ovens which was announced previously. Consultation with the Trade Unions and Employee Representatives will commence as soon as possible.

Cornelius Louwrens, UK Business Director and Chief Operating Officer said;

“This is an extremely sad day for all of us at SSI UK, and in particular our employees and their families. Together with our parent company and the various other stakeholders, they have worked so hard in their endeavours to try and make this business successful. Despite the significant progress we made in the financial performance of the Business during 2014, market conditions this year have been extremely challenging and unfortunately this has led to the decision we are announcing today.

I would like to pay tribute to and thank everyone connected with SSI UK for their great support. My wish is that this facility can once again restart operations and fulfil the potential of the plant and its loyal workforce”

Editors Notes;

1.    Sahaviriya Steel Industries UK Ltd, located at Redcar in the North East England is a 100% owned UK based subsidiary of Sahaviriya Steel Industries Public Company Limited (SSI)

2.    SSI UK comprises iron and steelmaking facilities with a capacity of 3.6million tonnes of slab production per annum

3.    SSI is the largest steel sheet producer in South East Asia with an annual hot rolling capacity of 4 million tonnes, and is publicly owned and listed in the Stock Exchange of Thailand

For further information contact:

John Baker, Communications Director SSI UK

Telephone: 01642 408275 / 07710 035 893

 

 

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