Redcar-based steelmaker SSI UK tells Kallanish that it has decided to mothball its iron and steelmaking facilities on Teesside. The Redcar Coke Ovens and the Power station will continue to operate, the company says.

This decision has had to be taken against a continuing background of poor steel trading conditions across the globe, the steelmaker adds. The consequential severe deterioration in steel prices experienced during the course of 2015, together with the view that this is unlikely to change in the short term have both contributed to the decision.

“We will continue to work with various stakeholders, including government with the objective of restarting operations at Teesside at some point in the future”, SSI says in a statement.

“As a further consequence of the mothballing, it is proposed to reduce by around 1700 employees, including those affected by the mothballing of the South Bank Coke Ovens which was announced previously. Consultation with the Trade Unions and Employee Representatives will commence as soon as possible”, the steelmaker continues.