Redcar steel works owner goes into liquidation

The development followed an announcement by the government that £80m is to be made available to support workers who have lost their jobs at the plant in Teesside.

Some 1,700 jobs are being axed after SSI announced earlier this week it was mothballing iron and steelmaking because of a worldwide reduction in steel prices. There will be thousands more job losses in the supply chain.

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

‘Extremely difficult’

Speaking in Redcar, 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.”

The Business Department said it had rejected a “last minute and unrealistic” request from SSI for the taxpayer to make an “open-ended” funding commitment to maintain the coke ovens in Redcar.

“The government cannot accept the request,” it said. “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.”

‘Shocking’

Shadow business secretary Angela Eagle said it was “shocking that the government has chosen to turn its back on steelmaking on Teesside” and criticised its “refusal to assist with mothballing”.

Gareth Stace, director of trade body UK Steel, said Redcar “remains a viable and efficient plant” and a government-led summit taking place in two weeks would be “a make-or-break event for the entire industry”.

Steve Readman, site convenor for the GMB union, said: “The recent announcement of an £80m support package is welcomed. 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.”

Unite national officer Harish Patel said the government should intervene to “keep the coke ovens alight”, adding: “Once those ovens go cold then the hopes of finding another buyer will fade and the light on a proud tradition of steelmaking will be snuffed out.”

Unions have said ceasing production would have a devastating effect on the area after a 170-year history.