Cost of Redcar steel plant revival to SSI revealed

SSI - owner of the revived Redcar steel plant - has posted a first-quarter net loss of 2.84 billion baht (around £56m) a sharp drop from the same period last year.

SSI - owner of the revived Redcar steel plant - has posted a first-quarter net loss of 2.84 billion baht (around £56m) a sharp drop from the same period last year.

Revenue totalled 15.7 billion baht, which was a record high for the company, but the loss was attributed to expenses related to the company's ‘non-operating assets’ on Teesside.

The group’s report admitted: “The completion of the acquisition and the delays of the restart date significantly impacted the group's liquidity and financial performance.”

It went on to say: “Group management is taking steps to improve the group's liquidity and financial performance, operating cash flows and financial position, ensuring the ongoing financial support from the group's bankers and assessing the availability of financing from other resources.”

One of the group’s main aims is to maintain its strong business relationship with the bankers to maintain their continuing support.

“It remains in active discussions to keep them appraised of the group's financial performance, position and outlook,” said the company.

“The uncertainties may affect the ultimate recovery of the carrying value of the investment in SSI UK (around £243m) in the financial statements of the company, the carrying amounts of the SSI Teesside operating assets included in the consolidated financial statements and the liquidity and cash flows of the group.

“The consolidated financial statements do not include any adjustments that would otherwise be required if the SSI UK business does not operate profitably as planned or on-going support by the banks is discontinued.”

There was no local comment from bosses at the Redcar blast furnace site on Teesside.

 
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