TEESSIDE SCAFFOLDER
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Poised for SSI Teesside steel deal
by Mike Hughes, Evening Gazette
Feb 17 2011
Teesside Cast Products in RedcarTHE final few pieces of the SSI deal to buy Teesside Cast Products have now been put into place and the region is poised for an announcement tomorrow.
Exactly a year after the plant was mothballed, it is believed Business Minster Vince Cable will come to Teesside to announce that the Thai steel giants have completed their deal with Tata Steel to reopen the former Corus site and bring in 800 more workers to join the 700 still employed at the Redcar site.
Intricate talks to organise the shared responsibilities of the vast site between Tata and SSI have taken longer than anticipated, but it seems the day could finally be here that will once again change the face of steel production on Teesside.
After details of the arrangements emerged from Thailand, SSI’s president, Mr Win Viriyaprapaikit revealed the likely staff numbers and even talked about the possible output figures needed. Then, crucially, the whole process moved a step closer when SSI told the Thai stock market it had started to raise the £400m needed for the deal, including £127m in a rights issue to help finance its purchase of the site in Redcar.
Middlesbrough South MP Tom Blenkinsop told the Gazette this morning: “If this is the case, and we will all have to wait for the official announcement, this is fantastic news because it co-incides almost to the day a year ago when the blast furnace at Redcar was taken out of service.”
Mr Blenkinsop went on to praise the “tenacity and grit” of Teessiders who where determined not to let the industry die.
But Tata Steel have still remained on the brink of announcing the news without being able to confirm it
Last night Tata’s Rob Simpson told the Gazette: “The one-year anniversary is a point of time when people will renew their interest and ask ‘where is this deal now?’. But we can only confirm that negotiations are continuing.”
Mr Win said he is confident the plant will be operational six months after the change of ownership has been completed, and confirmed SSI is also in talks with the Government about expanding the TCP plant, which at full capacity can produce 3.5m tonnes of steel slab a year.
He told a trade magazine: “When we have stabilised production the next step will be to look at expanding capacity because it is the wish of the Teesside people that we invest in the output, which will provide more jobs and more income for the community.”
Mr Win’s passion for Teessde and its workers has been a driving force behind the talks.
In one of his first interviews with the Gazette, he described TCP as a “perfect match” and said: “When I came to the site last October I saw and felt the people’s passion for the plant. I’d never felt that anywhere else in the world - it was special.”
SSI is in a strong position to press on with its plans.
A strong rally in the global steel market saw the Thai firm generate net profits of £51.87m in the year to December 31, comfortably outstripping the £26.91m in the previous year. Revenues rose 43.7% to £0.97bn while assets of £0.86bn were almost twice the value of its liabilities.
The region will be transformed by the deal after being rocked by the news it had been dreading - TCP was to be mothballed with the loss of 1,700 jobs.
by Mike Hughes, Evening Gazette
Feb 17 2011
Teesside Cast Products in RedcarTHE final few pieces of the SSI deal to buy Teesside Cast Products have now been put into place and the region is poised for an announcement tomorrow.
Exactly a year after the plant was mothballed, it is believed Business Minster Vince Cable will come to Teesside to announce that the Thai steel giants have completed their deal with Tata Steel to reopen the former Corus site and bring in 800 more workers to join the 700 still employed at the Redcar site.
Intricate talks to organise the shared responsibilities of the vast site between Tata and SSI have taken longer than anticipated, but it seems the day could finally be here that will once again change the face of steel production on Teesside.
After details of the arrangements emerged from Thailand, SSI’s president, Mr Win Viriyaprapaikit revealed the likely staff numbers and even talked about the possible output figures needed. Then, crucially, the whole process moved a step closer when SSI told the Thai stock market it had started to raise the £400m needed for the deal, including £127m in a rights issue to help finance its purchase of the site in Redcar.
Middlesbrough South MP Tom Blenkinsop told the Gazette this morning: “If this is the case, and we will all have to wait for the official announcement, this is fantastic news because it co-incides almost to the day a year ago when the blast furnace at Redcar was taken out of service.”
Mr Blenkinsop went on to praise the “tenacity and grit” of Teessiders who where determined not to let the industry die.
But Tata Steel have still remained on the brink of announcing the news without being able to confirm it
Last night Tata’s Rob Simpson told the Gazette: “The one-year anniversary is a point of time when people will renew their interest and ask ‘where is this deal now?’. But we can only confirm that negotiations are continuing.”
Mr Win said he is confident the plant will be operational six months after the change of ownership has been completed, and confirmed SSI is also in talks with the Government about expanding the TCP plant, which at full capacity can produce 3.5m tonnes of steel slab a year.
He told a trade magazine: “When we have stabilised production the next step will be to look at expanding capacity because it is the wish of the Teesside people that we invest in the output, which will provide more jobs and more income for the community.”
Mr Win’s passion for Teessde and its workers has been a driving force behind the talks.
In one of his first interviews with the Gazette, he described TCP as a “perfect match” and said: “When I came to the site last October I saw and felt the people’s passion for the plant. I’d never felt that anywhere else in the world - it was special.”
SSI is in a strong position to press on with its plans.
A strong rally in the global steel market saw the Thai firm generate net profits of £51.87m in the year to December 31, comfortably outstripping the £26.91m in the previous year. Revenues rose 43.7% to £0.97bn while assets of £0.86bn were almost twice the value of its liabilities.
The region will be transformed by the deal after being rocked by the news it had been dreading - TCP was to be mothballed with the loss of 1,700 jobs.
