Steel manufacturer SSI UK has entered liquidation, days after announcing its Redcar site would be mothballed.
The Thai parent company’s board of directors has had an application granted to wind up SSI UK’s operations.
The Department for Business, Innovation and Skills said it would not “make an open-ended funding commitment to maintain the coke ovens in Redcar” as the company had offered an “unrealistic proposal”.
But the department did announce funding of up to £80m for the local community, including training for the 1,700 workers who lost jobs, and financial assistance for small businesses.
The government has invited steel companies, MPs, trade unions, Welsh and Scottish government representatives to a summit on 16 October to “start mapping out a path to a sustainable future for the industry”.
GMB union site convenor Steve Readman said: “We will want the Government and the liquidator to involve all interested parties who may wish to acquire the site and speak to them to save as much of the site as possible.”
SSI UK announced its Redcar site would be mothballed on 28 September after initially announcing ten days earlier that operations would be ‘paused’.
Some local scrap metal merchants have said they are waiting to be paid hundreds of thousands of pounds by the firm.
The British Metal Recycling Association director general, Ian Hetherington, said he was concerned that the closure represented a shrinking marketplace.