Reviewed: 14th October 2015
Ramifications from the liquidation of SSI UK and the mothballing of its Redcar steel plant are being felt by a growing number of companies in the North East of England, with the coal supplier Hargreaves the latest to announce job cuts as a result of the situation.
There had been some suggestions in recent days that the County Durham-based mining firm Hargreaves might have stepped in to maintain production at the Redcar steel plant but those hopes have since disappeared.
Hargreaves bosses have said that they wanted to support the plant in any way they could but made clear that this could not extent as far as a purchase of the facility.
Statements made by the government this week explained that the SSI plant would be closed completely on the basis of the official receiver’s view that there are no realistic offers for the facility in place or likely to emerge.
For Hargreaves, the result has been a need to trim its 2,500-strong UK workforce with 150 jobs now expected to go at the company.
The news follows the recent revelation that PD Ports, the owner of Teesport near Redcar, is to make around 80 members of its workforce redundant in light of new financial realities.
“The significant reduction in port activity arising from the cessation of steelmaking at Redcar will unfortunately have an adverse effect on PD Ports and our employees,” a spokesperson for the company said.
“Regrettably, closure of the Redcar plant will result in a number of redundancies across our Teesside business.”
For its part, Hargreaves recently updated the British stock market to clarify its position in relation to the SSI steel plant after rumours quickly spread that it might be looking to acquire the facility.
“Contrary to press speculation, Hargreaves has never contemplated buying the steelworks with a view to re-starting the blast furnace when market conditions improve,” it said.
“The company is willing to support any viable plan that can be developed to prevent the coke ovens from being destroyed. In the absence of such a plan being developed and implemented, we have prepared plans to wind down operations on site with immediate effect.”
The closure of the SSI plant at Redcar effectively brings to an end steel production on Teesside, with activity at the site having been halted on September 18th as a result of sharp falls in global steel prices.
Real Business Rescue is currently advising individuals affected by the SSI liquidation. If you know of any people or businesses affected by the recent news, please feel free to put them in touch with our Teesside / Tyneside offices, who will offer a free advice clinic. With 72 offices stretching from Inverness down to Exeter, Real Business Rescue can offer unparalleled director advice across the UK.
21st February 2019
Members of parliament have proposed that an online sales tax be levied against internet retailers in order to provide support for their high street counterparts.Read More
20th February 2019
The proposed merger of two of the UK’s largest retailers has been thrown into jeopardy with the Competition and Markets Authority (CMA).Read More