Hargreaves Services supporting SSI

Following the announcement of the liquidation of Sahaviriya Steel Industries’ (SSI) steelmaking operation at Redcar, UK, Hargreaves Services has indicated it has made itself available to the steelworks, the UK government and other stakeholders to offer advice and assist the development of plans that might preserve the coke oven operations in order to resume steelmaking in the future.

The company has expressed it is disappointed by the liquidation and its impact on the workforce, contractor base and nearby Teesside communities. However, the company has specified it is not contemplating buying SSI with a view to re-starting the blast furnace when market conditions improve.

The Durham based firm has specified its role is only to offer advice and assist with creating a plan that could have preserved the coke ovens in an operational state while options for the site are fully investigated. The company is willing to support any viable plan that can be developed to prevent the coke ovens from being destroyed. If no such plan forms, it has prepared plans to slowly reduce operations onsite with immediate effect.

The services and coal procurement that Hargreaves has provided to the site generated £4 million of operating profit in the last financial year and, if no viable plan can be implemented, the company anticipates a similar reduction in operating profit in future years. It also projects a one off charge of around £1.5 million relating to the redundancy cost of the staff involved in delivering the services onsite and other contract demobilisation costs.

The liquidation of SSI will leave the company with coal and coke stocks of approximately £14 million, which have been carefully managed and monitored and will be turned into cash over the next twelve months.

Edited from press release by Harleigh Hobbs

Read the article online at: https://www.worldcoal.com/coal/05102015/hargreaves-services-supporting-ssi-2962/