Member Article

1700 jobs lost as SSI confirms Redcar steel plant closure

SSI has announced the closure of its Redcar steel plant, following much speculation and worry over the past week.

Production ceased at the plant, one of the largest in the UK, last week amidst a collapse in the global steel market. 1700 jobs will reportedly be lost as a result of the closure, a catastrophe leading locals to call on the government to intervene.

Wearing t-shirts with the slogan ‘Save Our Steel’, workers staged a rally over the weekend which gained national attention as the firm received backing from Middlesbrough Football Club.

However, their efforts could not wane SSI’s decision. The closure has since been branded as a disaster from Redcar MP Anna Turley, who branded the situation as ‘devastating news’ via her Twitter account.

TUC General Secretary Frances O’Grady said: “Today’s announcement is a massive blow to the government’s Northern Powerhouse agenda and British industry. There now needs to be a comprehensive, rapid response plan to help workers affected by the closure.

“The future of British steel-making is at a crossroads. At a time when competitor nations are spending heavily on helping their energy-intensive industries to become greener, companies in the UK are being forced to pay huge costs.

“The Chancellor must provide more financial support for manufacturers in November’s spending review. If the government does nothing plants like SSI will continue to close.

“British steel-making contributes over £45bn to the UK economy and provides the kind of high-skilled labour we need to boost productivity. It can’t be allowed to wither on the vine.”

Business Minister Anna Soubry said: “Despite everyone’s recent efforts to help SSI this is very sad news and a big blow for the workforce and their families. They are the priority and with SSI’s difficulties being no secret, why I had already asked Amanda Skelton, Chief Executive of Redcar and Cleveland Borough Council, to chair a local taskforce to help support workers and the local economy. I also have concerns about reports that local contractors have gone unpaid.

“I hope that SSI’s announcement that they are mothballing the furnace gives some hope that steel making could be restarted on Teesside in the future.

“The steel industry across the UK is facing very challenging economic conditions. The price of steel has almost halved over the past year, with overproduction in the world market. While government cannot alter these conditions, I have called a steel summit to see what more can be done to help our steel industry.”

North East Chamber of Commerce Chief Executive James Ramsbotham said: “We are incredibly disappointed by the news of the mothballing of the Redcar blast furnace, but understand the decision given the huge pressures on the international steel markets. We thank the SSIUK management and staff for working so hard to try to ensure a positive outcome.

“This decision will have a significant impact throughout the region. The business community stands ready to work together to support the company and workforce as we continue to hold the ambition to retain steel-making on Teesside for the future.”