Business Minister Anna Soubry has said she is concerned about reports that local contractors at SSI have gone unpaid.
In a statement she 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 steelmaking 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.”
SSI Redcar to be 'mothballed'. 35 years this month since profitable Consett Steel closed by Thatcher
Terrible news that SSI is to be mothballed. We must hope that when market picks up it can restart as it did in 2012 and support workers now.
Tom Blenkinsop, the MP for Middlesbrough South and East Cleveland, has hit out at the Government following the news that iron and steelmaking at the SSI Redcar plant is being mothballed. Up to 1,700 jobs are to be lost.
Thousands of workers and their families have been left heartbroken by the news. Tweet us your thoughts on the situation @itvtynetees.
Responding to SSI news @roy_rickhuss said: 'This will be devastating news for our members and their families.'
Responding to SSI news @roy_rickhuss has said: 'We will be putting in place support for our members in the days and weeks ahead.'
SSI UK in Redcar say management will continue to work with various stakeholders, including Government with the objective of restarting operations at Teesside at some point in the future. 1,700 jobs will go. Consultation with the Trade Unions and Employee Representatives will 'commence as soon as possible.'
“This is an extremely sad day for all of us at SSI UK, and in particular our employees and their families. Together with our parent company and the various other stakeholders, they have worked so hard in their endeavours to try and make this business successful. Despite the significant progress we made in the financial performance of the Business during 2014, market conditions this year have been extremely challenging and unfortunately this has led to the decision we are announcing today. I would like to pay tribute to and thank everyone connected with SSI UK for their great support. My wish is that this facility can once again restart operations and fulfil the potential of the plant and its loyal workforce”
SSI UK has announced that the business has been left with no other option other than to mothball the iron and steel making facilities on Teesside. The Redcar Coke Ovens and the Power Station will continue to operate.
Management say the 'decision has had to be taken against a continuing background of poor steel trading conditions across the globe and the consequential severe deterioration in steel prices experienced during the course of 2015, together with the view that this is unlikely to change in the short term.'
Up to 1,700 jobs are to be lost and the Redcar steel plant is closed down, sources have told the Press Association.
Teesside MPs will highlight concerns about Redcar's steelworks at the Labour Party conference.
They have tabled an emergency motion, calling on the government to develop an 'active industrial strategy' to support the British Steel Industry.
It's more than a week since production stopped at SSI and the future of the plant remains uncertain.
Unconfirmed newspaper reports over the weekend claim up to 1,600 job losses may now be imminent.
We think this is an emergency, that is does deserve national attention so we're going to use the media focal point of the Labour Party conference to raise this issue again and apply more pressure, not just to SSI who still need to come forward with proper information but also the government to show what direct action they are going to do because we have people's lives at stake here.