steel wire

The Thamesteel plant on Sheppey faces closure

Union chiefs have described the collapse of Thamesteel as “devastating” as 400 jobs at the Sheerness factory hang in the balance.

Staff were told the steel firm had slumped into adminstration on Wednesday afternoon, after hopes of an investment deal with international oil firm Trafigura fell through.

It is understood the situation is so dire at the firm, which makes steel products for the construction industry, staff have been told wages will not be paid for this month.

Keith Hazlewood, national secretary of the GMB union, said: “This is devastating news for UK manufacturing, for the UK steel industry and for the local community. We are seeing a ‘march of the makers’ to the dole queues to join the 28,201 in Kent already claiming jobseekers allowance. It comes on top of news of more than 100 steel job losses in Corby.

“Jobs continue to haemorrhage from UK manufacturing. In the UK as a whole the recession has cost 706,300 manufacturing jobs a new GMB study shows.

“In 2006/7 there were 3,546,100 employed in manufacturing industry in the UK. The latest figure shows employment of 2,839,800 in 2010/11. This fall is on top of the 1.25m fall between 1994/5 and 2006/7.

“Vince Cable has to be proactive by supporting the UK steel industry and finding a buyer for this plant”.

The company is owned by the Saudi Arabian Al-Tuwairqi Group who took over the site in 2002.

Steel making first began at the plant in 1972 where it pioneered mini mill machines in the UK to make steel bars.

Unions who represent workers at the company say they will work with the administrators to try and find a new buyer.