Owned by Thailand-cased SSI, the Redcar plant in Teesside employs 2,000 workers and 1,000 contractors, specialising in iron and steelmaking. According to the Telegraph, the price of its steel slab has dropped by 40% in just the last year as a result of cheap parts imported from China – making it very difficult for the firm to make any profit.
SSI took control of Redcar back in 2010, spending around £1 billion to turn the business around and keep steelmaking operations in the UK. Unfortunately with the difficult conditions and falling demand over the last few years, owners have admitted the business is no longer sustainable.
Unions in the steelwork industry are calling on the government for support.
Update: 28th September
Unfortunately, SSI has announced that the Redcar plant will be “mothballed” and there will be 1,700 job losses. The firm said that it would be consulting with the employees on the situation.
If you are an employee of the business, please listen to the video below as it will tell you your rights as an employee of an insolvent business. There is a link at the end of the video to the Government website which expands further on what you need to know.