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As SSI Falters, U.K. Steelmakers Ask for Government Support
09/25/2015 - British steelmakers and labor unions have called on government to offer more help to the industry in the wake of the production halt at SSI UK’s Redcar mill.
Crippled by debt and struggling to turn a profit because of falling prices and excess supply, SSI suspended production at the integrated mill, leaving thousands of jobs in jeopardy.
According to Reuters, U.K. steelmakers have asked for more compensation for carbon permit costs and lower business rates, which they say can be five to 10 times higher than in the EU. They’re also asking that a review of energy rates be advanced, according to the BBC.
“This is a critical time for the future of the (UK) steel industry. Government has (the) power to take immediate steps which can alleviate pressure in the short term," said Gareth Stace, director of UK Steel, an industry association.
SSI is in talks to restructure 50 billion baht (US$1.4 billion) in loans. Losses at the company more than doubled to 6.3 billion baht in the first six months of this year from the same period of 2014, according to BloombergBusiness.
It had 74.3 billion baht of liabilities as of 30 June and 140.5 million baht in cash.
The company, which is based in Thailand, missed its latest repayment deadline, triggering the crisis. Bloomberg said it is Thailand’s biggest default since Thai Petrochemical Industry Pcl buckled under $3.8 billion of liabilities during the 1997 Asian crisis.
According to Reuters, U.K. steelmakers have asked for more compensation for carbon permit costs and lower business rates, which they say can be five to 10 times higher than in the EU. They’re also asking that a review of energy rates be advanced, according to the BBC.
“This is a critical time for the future of the (UK) steel industry. Government has (the) power to take immediate steps which can alleviate pressure in the short term," said Gareth Stace, director of UK Steel, an industry association.
SSI is in talks to restructure 50 billion baht (US$1.4 billion) in loans. Losses at the company more than doubled to 6.3 billion baht in the first six months of this year from the same period of 2014, according to BloombergBusiness.
It had 74.3 billion baht of liabilities as of 30 June and 140.5 million baht in cash.
The company, which is based in Thailand, missed its latest repayment deadline, triggering the crisis. Bloomberg said it is Thailand’s biggest default since Thai Petrochemical Industry Pcl buckled under $3.8 billion of liabilities during the 1997 Asian crisis.
