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| Version 0 | Version 1 |
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| Redcar steel plant goes into liquidation | Redcar steel plant goes into liquidation |
| (35 minutes later) | |
| Thai firm SSI, owners of the Redcar steelworks, is to go into liquidation. | Thai firm SSI, owners of the Redcar steelworks, is to go into liquidation. |
| Sources told PA that the board had applied to wind up the Teesside business, with a formal announcement being made later on Friday. | Sources told PA that the board had applied to wind up the Teesside business, with a formal announcement being made later on Friday. |
| The move followed a government announcement of an £80m package to support workers who have lost their jobs at the sprawling steel plant. | The move followed a government announcement of an £80m package to support workers who have lost their jobs at the sprawling steel plant. |
| Roy Rickhuss, general secretary of Community, said: “This is of course yet further devastating news for the workforce, their families and the community. We will be taking steps to ensure our members’ interests are represented through this process and putting claims forward for what they are owed. | |
| “My union, Community, will establish our own taskforce of organisers, legal and education and training officers to support our members, their families and the entire community on Teesside at this extremely difficult time.” | |
| Around 1,700 jobs are being axed after SSI announced earlier this week it was mothballing its iron and steelmaking operation. | Around 1,700 jobs are being axed after SSI announced earlier this week it was mothballing its iron and steelmaking operation. |
| The £80m support package includes funding for workers to train at local further education colleges and to help them start up their own business. | |
| The business secretary, Sajid Javid, who joined a local taskforce in Redcar on Friday, 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 business secretary, Sajid Javid, who joined a local taskforce in Redcar on Friday, 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 government also confirmed that the company 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 also confirmed that the company made a “last minute and unrealistic” request for the taxpayer to make an “open-ended” funding commitment to maintain the coke ovens in Redcar. |
| A statement by the business department said: “The government cannot accept the request. On the basis of the limited business case it was given, the government has no confidence that this is a realistic proposal for taxpayers to support. | A statement by the business department said: “The government cannot accept the request. On the basis of the limited business case it was given, the government has no confidence that this is a realistic proposal for taxpayers to support. |
| “In addition, it would be illegal and in breach of state aid rules. The company has never made a profit and the board’s proposal would do nothing to address the huge debts outstanding to local suppliers and other parties.” | “In addition, it would be illegal and in breach of state aid rules. The company has never made a profit and the board’s proposal would do nothing to address the huge debts outstanding to local suppliers and other parties.” |
| A steel summit will be held on 16 October, involving steel companies, MPs, unions and governments to discuss the future of the industry. It is understood that PwC are to be appointed as liquidators. |