The coke ovens and blast furnace at Sahaviriya Steel Industries UK Limited (SSI) Redcar steel mill are to be closed after no viable offers were received from potential buyers, the Official Receiver said today.
SSI was wound up by the High Court in Manchester on 2 October 2015 at the company’s request.
The Official Receiver, appointed liquidator by the Court, has maintained the site since that time to ensure its safety while discussions with interested parties about purchasing the facility in working order to take place.
The Official Receiver, Ken Beasley, said:
“SSI was placed into liquidation with substantial debts and had no funds available to purchase the coal needed to keep the coking ovens operational. I have ensured the continued operation of the ovens whilst I dealt with health and safety issues and considered whether there were any viable offers for the ovens. There is no realistic prospect of a buyer being found and the priority now is to close the ovens down safely.
“I cannot continue to draw on taxpayers funds to keep the ovens operational when there is no realistic prospect that a buyer will be found.
“I am continuing my liquidation of the company, including talking with interested parties about purchasing the company’s other assets.
“I thank the staff who have been involved in the continued operation of the company and recognise the great efforts that have been put in and the professionalism shown by people in a time of enormous personal pressure.”
The Official Receiver will continue to monitor the number of staff required to safely manage the site in a closure situation.
Unfortunately, staff numbers will decline as the closure plan progresses.
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Published: 12 October 2015
From: The Insolvency Service