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| Redcar steelworks receiver confirms closure of coke ovens | Redcar steelworks receiver confirms closure of coke ovens |
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| The coke ovens and blast furnace at the mothballed Redcar steelworks in north-east England are to be closed, dashing hopes that any of the plant’s 2,200 jobs can be saved. | The coke ovens and blast furnace at the mothballed Redcar steelworks in north-east England are to be closed, dashing hopes that any of the plant’s 2,200 jobs can be saved. |
| The company that owns the works was put into liquidation earlier this month after the government rejected a last-ditch appeal for financial help. The official receiver said on Monday that the decision to switch off the furnaces came after no viable offers were received from potential buyers and because there were no funds to keep fuelling them. | The company that owns the works was put into liquidation earlier this month after the government rejected a last-ditch appeal for financial help. The official receiver said on Monday that the decision to switch off the furnaces came after no viable offers were received from potential buyers and because there were no funds to keep fuelling them. |
| Related: Redcar steelworks owner goes into liquidation threatening all 2,200 jobs | Related: Redcar steelworks owner goes into liquidation threatening all 2,200 jobs |
| The plant’s owners, Thailand-based Sahaviriya Steel Industries (SSI), had said it could no longer support its loss-making UK subsidiary, which has run up debts of £500m. SSI said 1,700 directly employed staff would be axed. At least 500 workers were kept on while the liquidator held discussions with potential buyers for the mothballed Teesside plant, Europe’s second biggest steelworks. | The plant’s owners, Thailand-based Sahaviriya Steel Industries (SSI), had said it could no longer support its loss-making UK subsidiary, which has run up debts of £500m. SSI said 1,700 directly employed staff would be axed. At least 500 workers were kept on while the liquidator held discussions with potential buyers for the mothballed Teesside plant, Europe’s second biggest steelworks. |
| There had been hopes that the coke ovens could be kept running with a view to restarting the works under a future owner. But the closure of the ovens suggests the remaining staff will lose their jobs. | There had been hopes that the coke ovens could be kept running with a view to restarting the works under a future owner. But the closure of the ovens suggests the remaining staff will lose their jobs. |
| Ken Beasley, the official receiver, said in a statement issued by the Insolvency Service: “SSI was placed into liquidation with substantial debts and had no funds available to purchase the coal needed to keep the coking ovens operational. | Ken Beasley, the official receiver, said in a statement issued by the Insolvency Service: “SSI was placed into liquidation with substantial debts and had no funds available to purchase the coal needed to keep the coking ovens operational. |
| “I have ensured the continued operation of the ovens whilst I dealt with health and safety issues and considered whether there were any viable offers for the ovens. There is no realistic prospect of a buyer being found and the priority now is to close the ovens down safely. I cannot continue to draw on taxpayers’ funds to keep the ovens operational when there is no realistic prospect that a buyer will be found.” | “I have ensured the continued operation of the ovens whilst I dealt with health and safety issues and considered whether there were any viable offers for the ovens. There is no realistic prospect of a buyer being found and the priority now is to close the ovens down safely. I cannot continue to draw on taxpayers’ funds to keep the ovens operational when there is no realistic prospect that a buyer will be found.” |
| Beasley, who was appointed liquidator by Manchester’s high court, said he would continue to talk with interested parties about purchasing the company’s other assets. But the Insolvency Service added: “Unfortunately, staff numbers will decline as the closure plan progresses.” | Beasley, who was appointed liquidator by Manchester’s high court, said he would continue to talk with interested parties about purchasing the company’s other assets. But the Insolvency Service added: “Unfortunately, staff numbers will decline as the closure plan progresses.” |
| My statement on the Official Receiver's hard closure of Redcar - total contempt for our history, heritage & future http://t.co/hlaxIcLvuf | My statement on the Official Receiver's hard closure of Redcar - total contempt for our history, heritage & future http://t.co/hlaxIcLvuf |
| Anna Turley, the Labour MP for Redcar, said she was devastated by the news of the furnace closures and accused the government of allowing “170 years of steelmaking to fade away with no fight”. | Anna Turley, the Labour MP for Redcar, said she was devastated by the news of the furnace closures and accused the government of allowing “170 years of steelmaking to fade away with no fight”. |
| “The heart of our local economy has been torn out without a care from the government. I will be calling for an enquiry to look at how this could have happened. We now need to explore how they are going to do this hard closure, what the cost is going to be, and to look at how this act of industrial vandalism could have been allowed to happen,” she said in a statement. | “The heart of our local economy has been torn out without a care from the government. I will be calling for an enquiry to look at how this could have happened. We now need to explore how they are going to do this hard closure, what the cost is going to be, and to look at how this act of industrial vandalism could have been allowed to happen,” she said in a statement. |
| Earlier this month, the government announced an £80m support package for workers who are losing their jobs at the sprawling plant. At the time, the business secretary, Sajid Javid, described the plea for help from the works’ owners as a “last-minute and unrealistic request for the taxpayer to make an open-ended funding commitment”. | Earlier this month, the government announced an £80m support package for workers who are losing their jobs at the sprawling plant. At the time, the business secretary, Sajid Javid, described the plea for help from the works’ owners as a “last-minute and unrealistic request for the taxpayer to make an open-ended funding commitment”. |
| The business minister, Anna Soubry, said on Monday that the government would continue to provide the receiver with funds “to manage this situation in a safe and orderly way”. | The business minister, Anna Soubry, said on Monday that the government would continue to provide the receiver with funds “to manage this situation in a safe and orderly way”. |
| Related: Redcar shows need for efficient UK energy | Letters | |
| “I had hoped that a commercial buyer for the coke ovens could be found, but unfortunately this has not happened. This news is very, very disappointing and my thoughts are with the workers and their families,” Soubry said. | “I had hoped that a commercial buyer for the coke ovens could be found, but unfortunately this has not happened. This news is very, very disappointing and my thoughts are with the workers and their families,” Soubry said. |
| Steel industry leaders in the UK say they are battling a number of headwinds. As the owners of the Redcar plant announced plans to mothball the recently modernised facility, they said they could no longer compete with low-cost imports from places such as China. They also complained that their situation was made worse by high energy costs in Britain and the soaring price of the pound against other currencies, which made their exports expensive and rival imports cheaper. | Steel industry leaders in the UK say they are battling a number of headwinds. As the owners of the Redcar plant announced plans to mothball the recently modernised facility, they said they could no longer compete with low-cost imports from places such as China. They also complained that their situation was made worse by high energy costs in Britain and the soaring price of the pound against other currencies, which made their exports expensive and rival imports cheaper. |
| The lobby group UK Steel said the latest news from Redcar raised the pressure to find ways of helping the embattled industry at a meeting this week between steel companies, MPs, unions and the government. | The lobby group UK Steel said the latest news from Redcar raised the pressure to find ways of helping the embattled industry at a meeting this week between steel companies, MPs, unions and the government. |
| Gareth Stace, the director of UK Steel, said: “This decision makes the possibility of rescue more remote. But it reinforces the importance of this week’s summit as it becomes ever more critical to bring forward solutions to ensure the whole steel sector in the UK can be put on a sustainable footing.” | Gareth Stace, the director of UK Steel, said: “This decision makes the possibility of rescue more remote. But it reinforces the importance of this week’s summit as it becomes ever more critical to bring forward solutions to ensure the whole steel sector in the UK can be put on a sustainable footing.” |
| Government accused of ‘snuffing the light out’ on steelmaking in Redcar https://t.co/nUx3aehFKg #SaveOurSteel pic.twitter.com/XKRcyXSYI6 | Government accused of ‘snuffing the light out’ on steelmaking in Redcar https://t.co/nUx3aehFKg #SaveOurSteel pic.twitter.com/XKRcyXSYI6 |
| The trade union Unite described the government’s handling of the Redcar closure as “laissez faire” and warned that it set a “a dangerous precedent for an industry battling to stay afloat”. | The trade union Unite described the government’s handling of the Redcar closure as “laissez faire” and warned that it set a “a dangerous precedent for an industry battling to stay afloat”. |
| Unite national officer Harish Patel said: “We would urge the government to change its stance, to intervene and support Redcar and the UK steel industry, so that British industry can take advantage of major projects such as HS2 and the northern powerhouse. | Unite national officer Harish Patel said: “We would urge the government to change its stance, to intervene and support Redcar and the UK steel industry, so that British industry can take advantage of major projects such as HS2 and the northern powerhouse. |
| “Steelmaking in the UK is at a crisis point. It is time for the government to stop hiding behind EU rules and follow the lead of the Italian, French and German governments by intervening to save a critical part of the British economy.” | “Steelmaking in the UK is at a crisis point. It is time for the government to stop hiding behind EU rules and follow the lead of the Italian, French and German governments by intervening to save a critical part of the British economy.” |