Business Minister Anna Soubry has told ITV News Tyne Tees that three Thai banks - the main creditors of SSI - are now, in effect, running the parent company of SSI UK, which will have an impact on the future of steelmaking at Redcar.
This follows the news that SSI UK has today entered liquidation.
UKIP MEP Jonathan Arnott has said he is "deeply disappointed" the government "did not fight harder to keep SSI open."
Speaking after news the steelmaking firm entered liquidation, Jonathan Arnott said, "The SSI plant in Redcar has been an integral part of the local community for many, many years. Not only will these 1,700 jobs now be lost with all the uncertainty that redundancy creates, there will be a secondary impact on many other local companies associated with the steel industry."
He added, “Redcar already has a high level of unemployment, so the impact upon the local community cannot be overestimated."
The MEP for North East England has also questioned whether the £80m government package to help redundant workers could have been spent to keep the plant open.
“The tragic part is that the plant could have been profitable in the long term; raw materials will not always be so expensive, the pound will not always be so strong and Chinese dumping is not permanent so steel prices will rise."
It is understood that Pricewaterhouse Coopers are to be the appointed administrators for SSI UK.
It's according to sources from the Press Association.
More to follow.
Manchester Civil Court ruled to 'compulsory wind up' workings at SSI UK in Redcar. Now, a liquidator will be appointed. An 'official receiver' values assets and at this point, the only thing SSI UK can do is seek the guidance of an insolvency practitioner to discuss the possible outcomes of compulsory liquidation. Possible negative outcomes include the complete dissolution of SSI UK.
BREAKING: SSI UK is to go into liquidation - according to sources from the Press Association
More to follow.
The Middlesbrough South and East Cleveland Labour MP, Tom Blenkinsop, has told ITV News Tyne Tees that he would like the Government to intervene and force SSI to put its Teesside works into administration.
He has accused the company of 'playing Russian roulette with the Redcar site and people's lives' following reports that the Thai company had come up with its own rescue plan with Thai banks by going into Business Rehabilitation.
The Government says that after weeks of discussions, SSI UK made a last minute and unrealistic request for the taxpayer to make an open-ended funding commitment to maintain the coke ovens in Redcar. The Government added that it cannot accept the request.
The £80m Government package aimed at helping SSI workers will include:
- Funding for affected workers to train at local further education colleges and tailored support for them via Jobcentre Plus
- Finance to assist workers if they want to start up their own business
- The Government will also consider proposals put forward by the local taskforce being led by Amanda Skelton, Chief Executive of Redcar and Cleveland Borough Council. Business Secretary Sajid Javid and Business Minister Anna Soubry will both be attending a meeting of the taskforce in Redcar today.
“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 Government has just announced a package worth up to £80 million to support people who have lost their jobs as a result of the mothballing of SSI’s Redcar plant and invest in the future of the Tees Valley economy.
More talks are being held today in an attempt to find a rescue plan to save the Redcar steel works.Read the full story ›