Sahaviriya Steel Industries UK Ltd. (SSI UK) has announced that iron and steelmaking operations at its plant at Teesside, United Kingdom, will be suspended based on ongoing issues with the supply of raw materials and services.
Local news outlets have reported that 1,700 jobs are being eliminated at the facility.
Sahaviriya Steel Industries UK Ltd., located at Redcar in the Northeast England is a UK-based subsidiary of Sahaviriya Steel Industries Public Company Limited (SSI), based in Thailand.
The company announced a pause in operations on 18 September, reporting that preparations were being made to systematically reduce production, with the goal to retain the plant in a condition whereby it can be brought back into production at an appropriate point.
SSI UK says that its Redcar coke ovens and power station will continue to operate at a reduced level. Production at South Bank Coke Ovens will cease and the plant will be mothballed, SSI says.
Cornelius Louwrens, UK business director and chief operating officer says, “It is with great regret that we have had to make this announcement and we are deeply aware of the concern it will give to our employees and their families.”
The company says its decision follows a major deterioration in steel prices affecting business during the course of this year. The company also says the move was taken in a scenario where no other practical options were available.
SSI adds that the situation will be reassessed after discussions with stakeholders, including government officials and suppliers.
SSI UK comprises iron and steelmaking facilities with a capacity of 3.6 million metric tons of slab production per year.