SSI's Redcar plant mothballed with loss of 1,700 jobs

SSI, the UK’s second-largest steelmaker behind Tata,has mothballed its Redcar iron and steel operations on Teesside with the loss of 1,700 jobs, blaming the “continuing background of poor steel trading conditions" and declining steel prices.

The Redcar coke ovens and power station will continue to operate, the company said.

SSI had announced earlier in the month that it had halted the Redcar operations.

Cornelius Louwrens, SSI UK business director and chief operating officer, had said: " 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."

SSI, which is a Thai firm, directly employs 2,000 people in the UK and 1,000 contractors.

Terry Scuoler, chief executive of the manufacturers’ organisation EEF, said: “In the short-term we need a clear indication from government - as a matter of urgency - that it will honour its commitment to compensate steel and other energy intensive industries from the cripplingly high cost of energy.

“Failure to do so would mark a tipping point for this vital industry which is the foundation of the success of so many other manufacturing sectors.”