GMB Call On The UK Government To Help Save Redcar Steelwork Where SSI Has Announced A Pause In Production
The high pound, weak euro, high energy prices and very difficult market conditions have led this plant into jeopardy says GMB
GMB, the union for steel workers, commented on the announcement by SSI on the Redcar steel works. See notes to editors for copy of SSI announcement that iron and steelmaking operations at their plant at Teesside will be paused due to ongoing issues with the supply of raw materials and services dated 18th September 2015.
David Hulse, GMB National Officer, said "GMB is in contact with managers running the plant. I am on my way to Teesside to deal with what is a very difficult and distressing position for the workers and their families.
Over the past six months the unions have been trying to get support from the UK Government to help this plant deal with a difficult position. The high pound, weak euro, high energy prices and very difficult market conditions have led this plant into jeopardy. These factors threaten the future of the UK steel industry. It is of too much strategic importance to the UK economy to be allowed to go under."
Contact Dave Hulse 07971 266 157 or Michael Blench on Teesside on 07870 176 748 or GMB press office 07974 251 823 or 07921 289880
Notes to editors
Copy of SSI announcement dated 18th September 2015.
SSI UK announce that iron and steelmaking operations at their plant at Teesside will be paused due to ongoing issues with the supply of raw materials and services . Preparations are being made to systematically reduce the production during the course of today, with a view to retaining the plant in a condition whereby it can be brought back into production at an appropriate point.
Redcar Coke Ovens and the Power Station will continue to operate at a reduced level. Production at South Bank Coke Ovens will cease and the plant mothballed.
Cornelius Louwrens, UK Business Director and 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.
The problems within the global steel industry have been well publicised in recent weeks and our decision follows a major deterioration in steel prices affecting our business during the course of this year. Our parent company and other stakeholders have given great support to the business, and the decision to pause our iron and steel production has been taken reluctantly and in a scenario where no other practical options are available at present.
We are taking this pause in production in order to re-evaluate and assess the situation following the outcome of ongoing discussions with our various stakeholders, including Government and suppliers.
Discussions will be held as soon as possible with our trade unions and employee representatives to clarify the effect the production pause will have on our employees "
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