Redcar steel plant facing administration

Redcar slack furnace on Teesside. Picture: Ross Parry
Redcar slack furnace on Teesside. Picture: Ross Parry
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tHE government and unions are understood to be trying to cobble together an eleventh-hour rescue for threatened Thai-owned Redcar steel plant as administration looms.

Sahaviriya Steel Industries (SSI) halted production at the plant on Teesside last week, which employs about 3,000 workers, after months of financial problems.

Weekend reports said SSI has filed a “notice of intent to appoint administrators” at a court in Leeds this month. The filing gives temporary protection against creditors, although it is not automatic that a full administration will follow.

It is thought PwC partners Ian Green and David Kelly have been lined up to run the insolvency.

The Thai business bought the Redcar plant, one of a diminishing number of steel plants in the UK including Scunthorpe, Cambuslang in Scotland, and Port Talbot in south Wales.