New deal to ‘bring new life’ into Redcar Steelworks

Redcar Steelworks will be taken over by development company South Tees Corporation, who aim to create over 20,000 jobs in the next ten years. 

In 2015, Redcar steelworks in North Yorkshire, owned by Thai company Sahaviriya Steel Industries (SSI) went into liquidation, resulting in the loss of over 2,000 jobs.

However, after nearly three weeks of intense negotiations, South Tees Development Corporation have acquired the site for development.

In January 2019, Tees Valley Mayor, Ben Houchen secured a deal to transfer 1,420 acres of the land to the development corporation.

Following negotiations, a deal has been struck that means a following 840 acres of land will be acquired and transferred to Tees Valley.

As part of the deal, 90 jobs have been saved at Redcar Bulk Terminal, which will continue to operate as normal.

The deal also includes plans to develop an electric arc furnace in the next three years.

Tees Valley Mayor Ben Houchen said: ‘I am delighted that today we have reached an agreement with SSI to take back control of the former Redcar steelworks.

‘Thanks to the agreement we have reached, we can move forward bringing new life into an area that was devastating following the steelworks closure in 2015.

‘Those living across Redcar particularly those in the shadow of the steelworks, the former steelworkers, their families and their communities, will have been waiting for this day to come. I am certain that the deal we have agreed will lead to a brighter and successful future for the area.’

Win Viriyaprapakit CEO of SSI said: ‘Over the last three weeks, we have been in intensive talks with Mayor Houchen and his team to deliver a solution that works for everyone involved, and I am pleased a deal has now been done.

‘It is from these intense discussions that we saw Mayor Houchen’s integrity and character, and his commitment to the region. Based on that, SSI took the decision to secure a deal as we fully support Mayor Houchen’s vision for the site.’

Photo Credit – Pixabay