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SSI Redcar In Liquidation

Friday, October 2, 2015

GMB Seek Immediate Talks With The SSI Liquidator On Behalf Of Redcar Steel Workers

Government and the Liquidator must involve all interested parties who may wish to acquire the site and speak to them to save as much of the site as possible says GMB

GMB commented on the appointment of a Liquidator for the SSI Redcar site and the announcement  by BIS of an £80 million support package for SSI workers and the local economy. See notes to editors for copy of BIS press release dated 2nd October 2015.

Steve Readman, GMB Site Convenor, said “We have just been informed that the Board of Directors has applied to the court to wind up SSI-UK and that application has been granted and SSI-UK is now in liquidation.

We need to understand who has been appointed and will seeking answers in the coming hours as to how this announcement affects our members and the current plant operations.

The recent announcement of a £80 million support package is welcomed. We will be involved in working through the detail of how this funding can be accessed and how quickly and who by.

In light of the announcement that SSI-UK is now in liquidation we need to understand if the package includes Redundancy Payment Services etc.

This is an extremely worrying time for our members and their families and the wider community and will be doing all we can to support them.

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.”

End

Contact Steve Readman on  07957 494406 or 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 BIS press release dated 2nd October 2015.

£80 MILLION SUPPORT PACKAGE FOR SSI WORKERS AND LOCAL ECONOMY

  *   Government to provide package worth up to £80 million
  *   Funding will support workers with training and help local firms to grow and create jobs
  *   Unrealistic proposal from company rejected, liquidation a risk

The Government has today announced a package worth up to £80 million to support people who have lost their jobs as a result of the mothballing of SSI's Redcar plant and invest in the future of the Tees Valley economy.

The package includes:

  *   Funding for affected workers to train at local further education colleges and tailored support for them via Jobcentre Plus
  *   Finance to assist workers if they want to start up their own business and for local small businesses to grow and create jobs

Full details of the package are being worked through and discussed with local stakeholders. The Government will also consider proposals put forward by the local taskforce being led by Amanda Skelton, Chief Executive of Redcar and Cleveland Borough Council. Business Secretary Sajid Javid and Business Minister Anna Soubry will both be attending a meeting of the taskforce in Redcar today.

Business Secretary Sajid Javid said:

"This is an extremely difficult time for the workforce at SSI and the local community. The package we are announcing today will provide important support to workers and the local economy. Across government we will continue to focus on providing assistance where we can."

After weeks of discussions the Government can also confirm that the company made a last minute and unrealistic request for the taxpayer to make an open-ended funding commitment to maintain the coke ovens in Redcar.

The Government cannot accept the request. 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. In addition, it would be illegal and in breach of state aid rules. The company has never made a profit and the board's proposal would do nothing to address the huge debts outstanding to local suppliers and other parties.

The Thai parent company of SSI UK has also posted on its website that it has entered "rehabilitation" under Thai law. Clearly liquidation in the UK is a risk.

The Government will be holding a steel summit on Friday 16 October. Steel companies, MPs, trade unions, Welsh and Scottish Government representatives will be invited to look at how best to work together to find solutions to the challenges being faced in the current very difficult global market conditions. It will also start mapping out a path to a sustainable future for the industry.

Notes to editors:

  1.  The Government is also currently considering a landmark devolution proposal from Tees Valley which would devolve powers from Whitehall into the hands of local people and businesses.
  2.  Providing direct financial aid to the steel industry is illegal under state aid rules. Government agencies have worked tirelessly to help the company where we can and within the bounds of the law.
  3.  Since 2013 the Government has paid £47.7 million in compensation to steelmakers to mitigate the impact of climate change policy on electricity costs.
  4.  In July, the Government voted for the extension of EU anti-dumping measures on Chinese wire rod products. The Government is aware of the impact of imports on the industry and will consider further cases as they arise.
  5.  The Government has identified a pipeline of over 500 infrastructure projects to help the industry win contracts and taken steps to ensure business gets the most out of procurement opportunities through the Government's 'Contracts Finder' portal.
  6.  The Government is undertaking the most wide-ranging review of national business rates in a generation.

Department for Business, Innovation & Skills
1 Victoria Street, London SW1H 0ET
Press enquiries +44 (0)20 7215 5969 | (Out of hours) +44 (0)20 7215 3234/3505 | Public enquiries +44 (0)20 7215 5000
Textphone +44 (0)20 7215 6740 (for those with hearing impairment) | Press Office fax +44 (0)20 7222 4382
www.gov.uk/bis<https://www.gov.uk/bis>

 

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