PRODUCTION was suspended yesterday at a steelworks in north-east England where 3,000 jobs are threatened.

The Thai-owned SSI UK steelworks at Redcar said it had hit financial problems through a combination of a strong pound, weak euro, high energy prices and “very difficult market conditions” and has failed to meet debt repayments to banks.

Now production has been paused due to “ongoing issues with the supply of raw materials and services.”

As reported in Wednesday’s Morning Star, union GMB has appealed for government assistance to save the 2,000 permanent jobs and 1,000 contractors. None has emerged, though the firm says talks are planned with the government.

“I am on my way to Teesside to deal with what is a very difficult and distressing position for the workers and their families,” said GMB national officer David Hulse.

“Over the past six months the unions have been trying to get support from the UK government to help this plant deal with a difficult position.

“The high pound, weak euro, high energy prices and very difficult market conditions have led this plant into jeopardy. These factors threaten the future of the UK steel industry. It is of too much strategic importance to the UK economy to be allowed to go under.”

Announcing suspension of production SSI UK chief operating officer Cornelius Louwrens said the firm was “deeply aware of the concern it will give to our employees and their families.”

He said SSI would meet unions “to clarify the effect the production pause will have on our employees.”

Steelworkers’ union Community general secretary Roy Rickhuss said the suspension was “devastating news” and that Community would seek urgent talks with SSI management.

“Only yesterday, following the parliamentary debate on the steel industry, we said that the time for delay is over and immediate government action is needed to support the industry,” he added.

MPs warned about the industry’s “dire prospects” in Thursday’s debate.

Business Minister Anna Soubry said that officials from the Welsh Assembly and Scottish Parliament would be invited to join their Westminster counterparts alongside worker and company representatives.