Mon, 21 Sep 2015 | ADMINISTRATION
Sahaviriya Steel Industries (SSI) is the focus of attention today as administration looms over its Redcar steel plant.
The Teeside plant halted production last week following months of financial distress and some 3,000 jobs hang in the balance with employees expecting to find out the fate of the business today (Monday 21 September).
Over the weekend reports emerged confirming that SSI has filed a “notice of intent to appoint administrators”. If an administration goes ahead, Ian Green and David Kelly, partners with PwC, are lined up to take control of the firm.
Cornelius Louwrens, the chief UK operating officer for SSI, said last week that it was with “great regret” that the firm had to announce its decision to halt production.
He added: “The problems within the global steel industry have been well publicised in recent weeks and our decision follows a major deterioration in steel prices affecting our business during the course of this year.
“Our parent company and other stakeholders have given great support to the business, and the decision to pause our iron and steel production has been taken reluctantly and in a scenario where no other practical options are available at present.”
The problems with the UK's steel industry are thought to have been caused by China and its vast stockpile of steel. While campaigners are petitioning the Government to step in and save the Redcar steel plant, there is concern that this could only ever be a temporary measure given the scale of China's operations.
View more businesses in administration.
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