Hopes of buyer for Redcar plant

A DURHAM mining company is in talks to buy the Redcar steelworks in a move that gives hope that the plant may fire up again in the f uture, writes Peter Campbell.

Hargreaves, which is listed on t he London Stock Exchange, is a coal mining and logistics firm and counts the nearby Teesside site as one of its major customers.

Last week SSI UK, the Thai firm that owns Redcar, collapsed into liquidation with the loss of 2,000 jobs.

The Government-backed insolvency service is working with accountants PwC to handle the situation. It is believed Hargreaves has been in talks since last week, when the decision to mothball the site was announced.

The plant has been hammered after the global price of steel halved, and its owners ceased production last month. Hargreaves makes £4m a year in profits from selling its coal to the plant. Last month it said: ‘We have worked hard to support the operations at SSI and will continue to do so.’

Talks were still going on last night, with an update expected this afternoon.

If the sale to Hargreaves goes ahead, the plant will still be mothballed. Hargreaves will maintain the site, an expensive process that requires around 300 staff, with a view to re-opening it for business in the future if possible.

A sale would also give it access to Redcar’s other assets. These include a deepwater port, which would help cut its shipping costs.

Business Secretary Sayed Javid yesterday defended the Government’s actions in allowing the plant to go under, saying: ‘I can’t change the global price of steel… but we can help those workers get back into work.’

The Government last week pledged £80m to help redundant steel workers re-train for new roles or start their own businesses.