Thursday 24th Sep 2020 - Logistics & Supply Chain

Redcar steel plant warning

Closure of the SSI UK steel plant at Redcar on Teesside would have significant supply chain impact, Stan Higgins, CEO of the North East Process Industry Cluster (NEPIC) has warned.

The steel plant paused operations on 18th September, citing issues with the supply of raw materials and services, as well as the continuing decrease in steel prices. The plant has some 2,000 employees and produces around 3.6 million tonnes of steel a year.

SSI_RedcarHiggins said: “Europe’s second biggest blast furnace is part of the chemical-processing sector of North East England and the loss of steel making in this region will have significant supply chain impacts.

“These impacts would include large volumes of industrial gases, water and water treatment, logistical support to engineering and maintenance, telecoms and office supplies. A significant number of companies will be impacted by a closure should it occur, in addition to the direct jobs of those employed within the site itself.

“This also goes against the recent UK strategy of re-shoring its manufacturing base. As a nation we should all be stating to the powers that be to save our steel.”

SSI is a member of NEPIC, which was created represent the companies and supply chain of the process industry in the region.

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