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Breaking news on BBC: SSI steel firm goes into liquidation - BBC News
SSI UK
A "pause" of just a couple of weeks18 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;
- 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)
- SSI UK comprises iron and steelmaking facilities with a capacity of 3.6million tonnes of slab production per annum
- 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
That was the original idea I think. But the Thai courts have now granted them permission to completely wind up the UK arm.Are they not even going to mothball it?
Sorry, perhaps merge threads?Previous thread here: Redcar Save Our Steel Tonight
Fuck sake though, originally said it was going to be mothballed, and now just going to wind up entirely.
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.
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.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?
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.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.
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).
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.
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... 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?
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).
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.
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.
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.
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.I cant belive that is true. If it is I'm going to start learning German!
Please provide a source for your claim regarding German engineers' pay grade vs UK pay grades.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.
I'm not being racist, so I'd appreciate it if you would retract that accusation. there are a number of instances where Chinese steels have been shown to be sub standard, and below the quality required for certain jobs.Chinese people are just as capable of making steel as smoggies. Don't be racist.