Redcar: Hargreaves Services ‘willing to support any viable plan’ to save steelworks

The Durham-based coal mining and energy services group dismissed reports that it was contemplating buying the works with a view to restarting the blast furnace when market conditions improve.

It said: “Hargreaves has, over the last three years, committed significant effort, credit lines, services and expertise to support the operation at Redcar.

“Given the importance of maintaining the coke ovens to secure the option to resume steelmaking in the future we have made ourselves available to SSI, the UK Government and other stakeholders to support the development of plans that might preserve the coke oven operations...

“Our role has been limited to offering advice and assistance to develop a plan that could have preserved the coke ovens in an operational state whilst options for the site are fully investigated.

“Following the announcement of liquidation, the Official Receiver has commenced a review of all operations.

“The company is willing to support any viable plan that can be developed to prevent the coke ovens from being destroyed. In the absence of such a plan being developed and implemented, we have prepared plans to wind down operations on site with immediate effect.”

Sahaviriya Steel Industries (UK) Limited entered liquidation on Friday. The Official Receiver, who is being helped by restructuring partners from PwC, is due to update on progress later today.

Hargreaves Services is led by Gordon Banham and is one of last big players in Britain’s coal industry.