Author Topic: Thai firm closes Redcar  (Read 1604 times)

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Online Taman Tun

Thai firm closes Redcar
« on: October 02, 2015, 06:44:38 PM »
Redcar steel plant goes into liquidation
Thai firm SSI applies to wind up Teesside business with loss of 1,700 jobs after government offers £80m aid package for redundant workers
Press Association
Published: 14:33 GMT+3 Friday, 02 October 2015

Thai firm SSI, owners of the Redcar steelworks, is to go into liquidation.

Sources told PA that the board had applied to wind up the Teesside business, with a formal announcement being made later on Friday.

The move followed a government announcement of an £80m package to support workers who have lost their jobs at the sprawling steel plant.

Around 1,700 jobs are being axed after SSI announced earlier this week it was mothballing its iron and steelmaking operation.

The money includes funding for workers to train at local further education colleges and to help them start up their own business.

The business secretary, Sajid Javid, who joined a local taskforce in Redcar on Friday, said: “This is an extremely difficult time for the workforce at SSI and the local community. The package we are announcing today will provide important support to workers and the local economy. Across government we will continue to focus on providing assistance where we can.”
We are masters of the unsaid words, but slaves of those we let slip out. Churchill
 

Offline Roger

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Re: Thai firm closes Redcar
« Reply #1 on: October 02, 2015, 08:53:09 PM »
Hi TT. Interesting in the BK Post today.
Apparently Redcar Steelworks was in liquidation.
Bought by an Indian Company. In liquidation again.
Then bought by SSI. Ditto.
It's the World market price for steel that has sunk Redcar.
Many years ago, working for a Cornish Company making 'heads' for in-car cassette recorders, we embarked on a major investment to stay in the market which was Blaupunkt, Motorola etc. As our new products came on stream, our manufacturing cost was 90p and the World price descended to 90p. With specs growing by the month. Competing against 'Alps Electric', Japan, who were making 1,000 times as many 'heads' as we were. Tragic. 240 redundancies in one day and Falmouth lost it's then biggest Company after Maggie's years of handiwork !! (Falmouth Docks just having laid off 900).
I wonder often about 'Globalisation' and it's benefits.
No answers though. ATB.
 

Online Taman Tun

Re: Thai firm closes Redcar
« Reply #2 on: October 03, 2015, 12:16:06 PM »
There was a story about this in the Guardian including a photo of a family walking along a beach in Redcar.  In the background of the photo is a large offshore wind farm.  So there you have cause and effect.  You cannot hope to compete in steel making if you are paying the highest electricity prices in the world.  Also, the minimum wage in the UK is a staggering equivalent 56,000 THB a month which is grossly uncompetitive compared with Far East rates.  Somehow the UK has got itself into this incredibly uncompetitive position.  So much of the UK taxpayers money has gone into propping up the completely unproductive casino banking industry, not to mention over generous public sector pensions.  Also, housing costs are just astronomic.  It would take a brave politician co carry out a bunch of economic reforms which would enable the minimum wage to be reduced to 10,000 THB equivalent, thereby enabling the real economy to flourish once more.
We are masters of the unsaid words, but slaves of those we let slip out. Churchill
 
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Offline dawn

Re: Thai firm closes Redcar
« Reply #3 on: October 03, 2015, 03:19:32 PM »
let's hope the redundant people are a bit like yourself and will pick them self up to get another well paid job.
ps:do i see another typo in your last post mr faring  ;)
the earliest light of day
 

Offline Roger

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Re: Thai firm closes Redcar
« Reply #4 on: October 03, 2015, 05:32:02 PM »
TT - the Redcar steelworkers are likely to be on much more than the minimum wage.
For the sake of discussion say, a cost of 100,000 THB a month would IMO be an understatement.
As you say, energy costs are much lower in China, Thailand etc.
So the economics are extremely wonky !
A desperate situation for the 1,700 families and the Redcar community ...


 

Offline Roger

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Re: Thai firm closes Redcar
« Reply #5 on: October 04, 2015, 09:50:30 AM »
Maybe we should add that it's jolly good of the Indians and the Thais to keep Redcar Steelworks going for so long after it's original failure.

 

 



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