Sahaviriya Steel Industries UK (SSI) has announced that it will close its coke ovens and blast furnace at the Redcar steel mill.
The firm’s court-appointed official receiver, Ken Beasley, said no viable offers were received from potential buyers and staff numbers will now decline as the closure plan progresses.
SSI was wound up by the High Court in Manchester on 2 October at the company’s request.
Beasley has maintained the site since that time to ensure its safety while discussions with interested parties about purchasing the facility in working order took place.
He said: “There is no realistic prospect of a buyer being found and the priority now is to close down the ovens safely.
“I cannot continue to draw on taxpayers’ funds to keep the ovens operational when there is no realistic prospect that a buyer will be found.”
He said he would continue his liquidation of the company, including talking with interested parties about purchasing the company’s other assets, and monitor the number of staff required to safely manage the site in a closure situation.
SSI purchased additional coal last week to keep the Redcar coke ovens temporarily operational during the weekend.
Staff have been sent letters on how to make an online claim for redundancy pay. Whitehall has announced funding of up to £80m for the local community, including training for the 1,700 workers who have lost their jobs and financial assistance for small businesses.
The Government has also invited steel companies, MPs, trade unions and Welsh and Scottish government representatives to a summit this week to “start mapping out a path to a sustainable future for the industry”.