Extra jobs hope as start-up to be revealed by SSI

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Extra jobs hope as start-up to be revealed by SSIby Jez Davison, Evening Gazette
Jun 24 2011

THAI firm SSI will announce next month when it will start producing steel on Teesside - with hopes that up to 300 more jobs could also be created.

SSI completed the £291m takeover of Redcar’s Teesside Cast Products in March.

During a visit to the plant by the Duke of York yesterday, SSI said a production start date for the site would be confirmed within weeks.

The company also said it could create up to 1,100 jobs - 300 more than previously announced.

Phil Dryden, CEO of SSI UK, said: “It will be the middle of next month before we know when we are going live.

“I’d imagine that between mid-July and the end of July we will be in a position to say: ‘this will be the start date’.”

At the time of the TCP acquisition, SSI had earmarked a start date some time in the final quarter of this year.

But yesterday Mr Dryden refused to be drawn on whether that was still the case.

He said it was vital not to rush into production before completing a major re-commissioning scheme - which involves a reconstruction of the inside of the blast furnace - that would give the plant a longer shelf life.

Every day we are not making steel is costing us money,” he said.

But if we started the plant in the same condition as when it closed, this would not be a successful business long term.

“It is not just a restart - it is a major refurbishment.”

Once the plant is fully operational again, SSI plans to create as many as 1,100 jobs to add to the existing 700-strong workforce.

At the time of the takeover, SSI president Win Viriyaprapaikit said he intended to create at least 800 new positions.

Now it looks as though his sights are set even higher - although Mr Dryden said the final figure would depend on market conditions.


Unions hailed the jobs announcement as another milestone in the renaissance of Teesside steelmaking.

Geoff Waterfield, chairman of the multi-union works committee on Teesside, said: “In the initial stages the numbers will be what they were before.

“But Mr Win and SSI have plans for expansion and a long-term future - and that takes more staff.”

Once the Redcar plant is operating at full capacity, SSI plans to ship 3.5 million tonnes of steel a year to Thailand - and eventually boost that further towards the 10 million tonnes a year achieved in Teesside’s 1970s heyday.

The Duke of York, speaking in his role as Special Representative for International Trade and Investment, praised SSI for its ambitious expansion plans.

“This is going to be a plant which adds value to the UK economy,” he said.

“Steelmaking is a passion of the North-east and something the region is extremely proud of.”

Road to revival

May 8, 2009: Corus - now Tata - announces a 90-day consultation process with a view to mothballing the Teesside Cast Products blast furnace after confirming members of the consortium that signed the 10-year deal with TCP in 2004 had walked out on the agreement.

May 2010: Thai giant SSI visits the Teesside Cast Products plant, but Corus remains tight-lipped about talks.

August 27, 2010: SSI, the biggest steel producer in Thailand, says it has signed a memorandum of understanding with Corus, to acquire TCP in a multi-million pound deal.

March 24, 2011: SSI completes the £291m deal to take over TCP.

March 25, 2011: SSI receives “the keys to the house” of Teesside Cast Products at a special ceremony at the Redcar site.

June 23, 2011: Prince Andrew visits the Redcar site as SSI bosses say they will announce in July the date for starting steelmaking. The company says it could create up to 1,100 jobs - 300 more than expected
 
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