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SSI UK (Redcar steelworks) goes into liquidation. Loss of 1700 jobs

SSI UK - Sahaviriya Steel Industries UK

18 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 ”

Editors Notes;



  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
A "pause" of just a couple of weeks :(
 
They claim they are going to keep the coke ovens going. Don't see how if they're winding up the UK arm. UK workers to be supported with a grant aid package of up to £80m, mainly for retraining and new small business start-up costs. As if those two things are magic wands that will magically solve these workers' problems.
 
That waste of space James Wharton MP for Stockton South was on R4 the other day almost ranting that Redcar was going to be mothballed for five years and not being shut.
Shows the minister for the northern powerhouse has his finger on the pulse.
Those sat in Westminster have never realised that even if something is mothballed after five years the manual skills will have gone, like anyother skill if it is not in use it fades away.
You cannot expect someone to return after five years and carry on with the same productivity they had when pushed to one side.
But that argument is now wasted because once again manufacturing is allowed to dissapate because the Tories (I include labour in this instance) cannot abide the possibility that any industry other than finance is viable and needed.
We only matter whilst paying tax and interest. Once you cannot provide that they wash their hands of the sorry mess they and their ilk have made of this once leader of manufacturing.
 
It should be mothballed because you can't tell what the future holds and really for the state it is loose change. The state could easily nationalise assets like that and maintain them until either its clear they will not be needed, or they can be restarted.

But this kind of stuff is happening all over the OECD nations and has been for a couple of decades. If not for ever. All kinds of different industries.

The OECD nations have already built huge amounts of infrastructure, they might need to maintain it but - outside of war time - they don't need to build it all again in such a (relatively) short space of time.

It isn't some kind of huge success - and the Tories would chuck it all in the sea if they could get away with it - but compare the reaction to this, to the miners in the 1980s. There were no redeployments, retraining, grants etc.
 
It should be mothballed because you can't tell what the future holds and really for the state it is loose change. The state could easily nationalise assets like that and maintain them until either its clear they will not be needed, or they can be restarted.

But this kind of stuff is happening all over the OECD nations and has been for a couple of decades. If not for ever. All kinds of different industries.

The OECD nations have already built huge amounts of infrastructure, they might need to maintain it but - outside of war time - they don't need to build it all again in such a (relatively) short space of time.

It isn't some kind of huge success - and the Tories would chuck it all in the sea if they could get away with it - but compare the reaction to this, to the miners in the 1980s. There were no redeployments, retraining, grants etc.

This reaction is another nail in the coffin for the UK manufacturing industry, it certainly isn't to be applauded or cheered. Retraining means more skills lost to the area, and to the steel industry as a whole.

the people put out of work would rather have jobs not you pointing out they have it better than the miners did.
 
This reaction is another nail in the coffin for the UK manufacturing industry, it certainly isn't to be applauded or cheered. Retraining means more skills lost to the area, and to the steel industry as a whole.

the people put out of work would rather have jobs not you pointing out they have it better than the miners did.

No one is applauding it. or saying it's good. It's a tough question. There has been/is a big problem in OECD countries with manufacturing industries, iron, steel, cement, bitumen, brick and so on. What happens when you build your motorway network? Your cities/railway network etc etc. What happens when you make power from the sun and wind and not from coal and oil...

What is your alternative? Right now they are either going to shut it or mothball it.
 
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I am afraid this is a rerun of what happened in 2010
Redcar's Corus plant
Although at that time there was a buyer, the company that is ducking out now.

How much steel does the UK economy need and where will it come from?

And what else will the laid off workers be able to do for work in the area?
 
I am afraid this is a rerun of what happened in 2010
Redcar's Corus plant
Although at that time there was a buyer, the company that is ducking out now.

How much steel does the UK economy need and where will it come from?

And what else will the laid off workers be able to do for work in the area?
We need a lot of steel for new power plants of all different kinds, and it has to be a certain type because of the temperature demands on it for steam raising. Cheap Chinese imports flooding the global market may be a short term economic solution but be more expensive longterm due to expensive repairs if it fails.
 
No one is applauding it. or saying it's good. It's a tough question. There has been/is a big problem in OECD countries with manufacturing industries, iron, steel, cement, bitumen, brick and so on. What happens when you build your motorway network? Your cities/railway network etc etc. What happens when you make power from the sun and wind and not from coal and oil...

What is your alternative? Right now they are either going to shut it or mothball it.
My alternative would be for the Conservative government to grow a pair and properly support UK manufacturing. do you know what one of the first things they did was on gaining power in 2010? They cancelled an agreed loan for Sheffield forgemasters to upgrade one of their furnaces so that they could build reactor housings, the same housing required for e.g. Hinckley point C -which will now probably be imported from China.

how is that that UK government refused to help support a first of kind full scale commercial carbon capture plant because they claimed it would cost too much at £1.5bn but they could underwrite a deal with the Chinese for £2bn for hinckley?
 
Yeah i dont think that is going to happen re the Tories. You could nationalise a steel plant in the UK, but then you would really need to do the whole lot...

China has a load of spare steel capacity because it has had to build infrastructure. As in had to. Right now it has a whole load of excess capacity, some of which is also going to shut.

But other countries including China are subsidising steel and various other industries and giving them unfair advantages...

The money for CCS isn't happening - generally around the world - because it doesn't work and it makes nuclear waste look positively safe (which it isn't).
 
Yeah i dont think that is going to happen re the Tories. You could nationalise a steel plant in the UK, but then you would really need to do the whole lot...

China has a load of spare steel capacity because it has had to build infrastructure. As in had to. Right now it has a whole load of excess capacity, some of which is also going to shut.

But other countries including China are subsidising steel and various other industries and giving them unfair advantages...

The money for CCS isn't happening - generally around the world - because it doesn't work and it makes nuclear waste look positively safe (which it isn't).

ccs technology has not yet been proven at full commercial scale. That is not the same as not working. Also, Canada and the US are proving it does work for e.g. enhanced oil recovery and smaller size power plants.
 
yes true, we are sidetracking the Redcar thread tho! cant say i agree on ccs long term but who knows!?

its a very pertinant question - and you can see it all over the EU - what replaces old industries that are no longer there. Does everywhere end up like Cornwall, agriculture and tourism?
 
This reaction is another nail in the coffin for the UK manufacturing industry, it certainly isn't to be applauded or cheered. Retraining means more skills lost to the area, and to the steel industry as a whole.

the people put out of work would rather have jobs not you pointing out they have it better than the miners did.

You have to wonder why they still have aluminium smelters, steelworks, coal mines and shipbuilding in Germany though?
And France, though to a lesser degree?
Seems we have an unwritten agreement with our 'EU colleagues' to allow our manufacturing capacity go down the pan as long as our banking and service industries are given free reign?
 
.. Seems we have an unwritten agreement with our 'EU colleagues' to allow our manufacturing capacity go down the pan as long as our banking and service industries are given free reign?
I don't think there is any agreement with our EU colleagues, rather there the powers that be have one view about the value of manufacturing industry and here the powers that be have a different view.

Of course if you count the number of cars on the UK's roads that are made in Germany, or for that matter France or Japan, and compare that to the number made in the UK, or Trains for that matter, you have an indication of the implications of the different policies.

German engineers typically earn 3-4 times as much as UK engineers, you have to wonder why Germany values engineers so much more highly than the UK does.
 
Yeah i dont think that is going to happen re the Tories. You could nationalise a steel plant in the UK, but then you would really need to do the whole lot...

China has a load of spare steel capacity because it has had to build infrastructure. As in had to. Right now it has a whole load of excess capacity, some of which is also going to shut.

But other countries including China are subsidising steel and various other industries and giving them unfair advantages...

The money for CCS isn't happening - generally around the world - because it doesn't work and it makes nuclear waste look positively safe (which it isn't).

Nuclear, 'on the whole' has a good safety record but it's downside is that it's prohibitively expensive, Hinckley point is off the scale in terms of overruns, offshore wind,solar and gas could and should provide the generation needs of the UK and could, at a fraction of the costs of Hinckley and other proposed nuclear generation plants.
 
I don't think there is any agreement with our EU colleagues, rather there the powers that be have one view about the value of manufacturing industry and here the powers that be have a different view.

Of course if you count the number of cars on the UK's roads that are made in Germany, or for that matter France or Japan, and compare that to the number made in the UK, or Trains for that matter, you have an indication of the implications of the different policies.

German engineers typically earn 3-4 times as much as UK engineers, you have to wonder why Germany values engineers so much more highly than the UK does.

Ok, to put it more bluntly, the "powers that be, in this country" have all their eggs in the financial sector, so as long as their EU counterparts concentrate on manufacturing and leave the UKs financial sector largely undisturbed then the status quo will continue,
No matter how how much our manufacturing base is destroyed, Redcar is only the latest, look at Alcan in the NE, and Ellington colliery, they didn't even get a mention in the national press
 
We need a lot of steel for new power plants of all different kinds, and it has to be a certain type because of the temperature demands on it for steam raising. Cheap Chinese imports flooding the global market may be a short term economic solution but be more expensive longterm due to expensive repairs if it fails.

Chinese people are just as capable of making steel as smoggies. Don't be racist.
 
German engineers typically earn 3-4 times as much as UK engineers, you have to wonder why Germany values engineers so much more highly than the UK does.

I cant belive that is true. If it is I'm going to start learning German!
 
I cant belive that is true. If it is I'm going to start learning German!
Some 20 years ago I tried to hire a German electronics engineer, it turned out they were earning more than twice (yes, not sure why I said 3-4 times above, perhaps that was bravado and exaggeration) what the same engineer earns in the UK.

So, I don't KNOW if it is still true, and my experience was a sample of one but if you want to find out I would browse some German job vacancy ads. They can't be too difficult to find.
 
I don't think there is any agreement with our EU colleagues, rather there the powers that be have one view about the value of manufacturing industry and here the powers that be have a different view.

Of course if you count the number of cars on the UK's roads that are made in Germany, or for that matter France or Japan, and compare that to the number made in the UK, or Trains for that matter, you have an indication of the implications of the different policies.

German engineers typically earn 3-4 times as much as UK engineers, you have to wonder why Germany values engineers so much more highly than the UK does.
Please provide a source for your claim regarding German engineers' pay grade vs UK pay grades.
 
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