Workers steeled for return to employment

Sahaviriya Steel Industries (SSI) will start recruiting next month at the Teesside Cast Products site in Redcar, Cleveland, which it bought for £320m from Corus earlier this year.

The plant was mothballed more than a year ago under the ownership of Corus after a major contract fell through, leading to the loss of more than 1,000 of the 1,800-strong workforce and sparking fears for its future.

The region has a long tradition of steel-making, and it is now expected that many of those laid off last year will have the chance to work at the plant again, although new recruits to the industry will also be considered.

No date has been given for the resumption of steel-making, although much of the steel slab which will be produced will be exported to Thailand for use in industries such as car production.

The Government, business and union leaders said yesterday’s announcement was “fantastic news”, giving a huge boost to the North East.

SSI chief executive Phil Dryden said: “I realise that, since SSI UK purchased the Teesside facility in March this year, there has been a great interest within the Teesside community about when steel-making will be resumed.

“There has already been a considerable amount of time and effort invested in planning the project, and I am hopeful that we can give a target date soon. With this in mind, we are taking another significant step in commencing the recruitment programme in August.

“SSI UK’s aim is to create a safe, successful and sustainable business, which will lead to the business becoming a world-class steel-maker.”

Business Secretary Vince Cable said: “The creation of these 1,000 new jobs is a fantastic boost to SSI UK, to Redcar and the North East.

“SSI UK has made incredible progress since it bought the steel-making plant in March. Teesside can look forward to large-scale steel production once again, producing 3.6 million tonnes of steel in the first year. That’s something for us all to celebrate.”

Michael Leahy, leader of the Community trade union, said: “Teesside has some of the best-trained and highly skilled people in the industry and today’s announcement creates a great platform for the future.”