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Thailand’s SSI Enters Bankruptcy, Liquidates British Steel Works
10/06/2015 - Thailand's top steelmaker has declared bankruptcy as it liquidates its U.K. steel division.
According to the Nikkei Asian Review, Sahaviriya Steel Industries' (SSI) application for business rehabilitation has been accepted by the Central Bankruptcy Court of Thailand. The magazine said the company owes lenders Krung Thai Bank, Siam Commercial Bank and Tisco Bank an estimated 50 billion baht, or about US$1.4 billion. The company hopes to restructure the debt while reviving its business through a focus on its mainstay, hot rolled and cold rolled steel, according to the magazine.
Much of that debt arises from its acquisition of the Redcar steel works in Teesside, England, which SSI is liquidating. It previously announced plans to mothball the plant, but had hoped to eventually return it to production.
The Redcar works employs more than 2,000 people, including contractors.
The British government is providing an aid package worth 80 million pounds (US$122 million) to support workers who have lost their jobs, according to Reuters.
Gareth Stace, director of UK Steel, a trade association, has called upon the government for industry support.
“It may be too late for SSI, but the situation in Redcar brings the problems facing the U.K. steel sector into sharp relief," he told The Telegraph newspaper.
"The government must now spearhead efforts to support the steel industry and the supply chains it feeds. The steel site in Redcar remains a viable and efficient plant and the government-led steel summit taking place in two weeks will be a make-or-break event for the entire industry.”
Much of that debt arises from its acquisition of the Redcar steel works in Teesside, England, which SSI is liquidating. It previously announced plans to mothball the plant, but had hoped to eventually return it to production.
The Redcar works employs more than 2,000 people, including contractors.
The British government is providing an aid package worth 80 million pounds (US$122 million) to support workers who have lost their jobs, according to Reuters.
Gareth Stace, director of UK Steel, a trade association, has called upon the government for industry support.
“It may be too late for SSI, but the situation in Redcar brings the problems facing the U.K. steel sector into sharp relief," he told The Telegraph newspaper.
"The government must now spearhead efforts to support the steel industry and the supply chains it feeds. The steel site in Redcar remains a viable and efficient plant and the government-led steel summit taking place in two weeks will be a make-or-break event for the entire industry.”
