SSI wants Corus steel plant in Redcar running by September

Sunday, 23 Jan 2011
It is reported that Thai firm Sahaviriya Steel Industries wants to get the Corus steelmaking plant in Redcar up and running again by September 2011.
As per report, SSI is poised to buy the Teesside Cast Product plant, which was mothballed last year following a severe downturn in the global steel industry.
Talks between SSI and Corus owner TATA Steel are at an advanced stage and a deal is expected to be clinched within two months.
Mr Win Viriyaprapaikit president of SSI said that he is confident the plant will be operational 6 months after the change of ownership has been completed. SSI is also in talks with the UK Government about expanding the TCP plant, which at full capacity can produce 3.5 million tonnes of steel slab a year.
Mr Win Viriyaprapaikit said that "When we have stabilized production the next step will be to look at that (expanding capacity) because it is the wish of the Teesside people that we invest in the output, which will provide more jobs and more income for the community."
SSI said that it was premature to give detail about the expansion plans, which could potentially create new jobs, before any deal goes through. But steel unions have welcomed the company's latest show of commitment to Teesside.
Mr Roy Rickhuss, national officer of the Community Union, said that "SSI recognises the world class workforce and production facilities that Teesside has to offer. We look forward to hearing more about their plans to expand steelmaking and we are also encouraged that the deal will be completed soon."
The UK Government has already given assurances that expansion plans at the TCP site will not be hindered by EU emissions rules. SSI bosses feared the company could be penalized under the EU’s Emissions Trading Scheme, which caps companies’ carbon emissions.
Under the scheme, which only affects firms operating in the EU, companies are given an allowance for the amount of their business activities produce. If they exceed their allowance, they must buy carbon certificates to cover the excess and pay a penalty on top.
UK manufacturers have expressed concern the scheme will put them at a trading disadvantage to foreign rivals, who are unrestricted by the heavy emissions laws.
(Sourced from www.nebusiness.co.uk)