Steel Firm SSI ‘To Go Into Liquidation’

Thai firm SSI, which owns Redcar steelworks, is to go into liquidation, the Press Association is reporting.

Sources say that the board has applied to wind up the Teesside business, with a formal announcement to be made later today.

The news comes as the government announced an £80m support package for workers who have been made redundant as a result of the mothballing of the plant.

The money will provide training for the workers, and also enable other local businesses to grow and create jobs.

Funding will also be available for workers who would like to start their own businesses, and tailored support will be given at local job centres.

In a statement announcing the initiative 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 full details of the deal are still being discussed, with both the Business Secretary and Business Minister Anna Soubry attending talks with a local taskforce today.

But the union representing many of the workers, Community, says that the package does not go far enough in supporting steel in Redcar.

They are calling for the government to step in to remove SSI from the plant to allow an alternative company to step in and restart production.

A spokesperson for the union said on Friday: "We have been saying for weeks that SSI is not fit for purpose.

"It (Other OTC: ITGL - news) is clear that SSI has yet again put forward a plan to government that lacks credibility.

"We believe there are alternative plans and parties who could intervene to protect the industrial assets.

"The Government's responsibility has not ended with the announcement of this support package.

"It should intervene to remove SSI and support an alternative approach that gives steel making an improved chance of a future."

The trade association for the steel industry, UK Steel, also commented on the support package, with Director Gareth Stace saying: “This is a welcome announcement to support the local community in its hour of need.

“However, the much bigger issue is the future of the steel industry in the UK which make no mistake is in crisis.

“The Government is able to ensure steel companies operate on a level playing field and its must use this opportunity to support the steel sector as I fear time is of the essence.”