Thamesteel

I thank you, Mr Davies, for the opportunity to begin this important and timely debate on Thamesteel and the future of UK steel production. I am grateful to hon. Members for attending the debate. Their presence illustrates not only the high importance with which hon. Members regard our country's steel industry, but the sympathy that we all share for the 400 steelworkers at Thamesteel who are undergoing the most difficult circumstances. Unfortunately, those circumstances, which all steelworkers, if not all workers, are experiencing now, have not been seen since the 1980s. I and many parliamentary colleagues wanted to secure this debate to highlight the dire way in which steelworkers at Thamesteel have been treated. Any steel site that is lost is a loss not just to the immediate area, but to British steel production and UK manufacturing. Many steelworkers have been here before; it is a familiar tale for those in the steel industry. Thamesteel, which is based in Sheerness, employed about 400 workers and had a production capacity of 840,000 metric tonnes of billet and 600,000 tonnes of bar rod. The site itself began operations in January 1972, and production started at the UK's first mini integrated works on the site of the historic Sheerness naval hospital. The site uses recycled steel to produce steel for the construction industry. Surviving the turmoil of MacGregor in the '80s and a number of trade union de-recognition plots by the management in the '90s, this community and its men and women have seen it all. In July 2002, when the site was owned by Allied Steel and Wire, ASW went into receivership and the employees lost their accrued pensions, but Community trade union fought a five-and-a-half-year campaign to secure a £12 billion financial assistance scheme, which secured the pensions of 90% of the affected workers, via a European Court of Justice ruling. In my former life, I was a Community trade union officer and lay official branch secretary and knew some of the people who were involved, and they stood by the Teesside Cast Products site and its steelworkers in their hour of need. Securing this debate for the Sheerness steelworkers is the very least that I can do to ensure that their case is heard at the highest possible level. UK steel producer Thamesteel, which was, until recently, owned by Saudi-based Al-Tuwairqi Group, went into administration after failing to secure an investor to rescue it from financial difficulties. That information was made public not by the company, but by Community trade union. Thamesteel became the second steelmaker that day to make an announcement that could result in job losses. Tata Steel Ltd, Europe's second-largest steelmaker, also announced plans to overhaul its European tube steel business amid weak demand for its products. It said that the move could result in 200 job losses, predominantly at Corby. Michael Leahy, the general secretary of Community, said that Thamesteel had informed the union's local representatives that the accountancy firm Mazars had been appointed as administrators after a deal with a Swiss group to secure the plant's future fell apart at the last minute. Michael Leahy said at the time that it was devastating news for everyone who worked at Thamesteel and for the wider community in Sheerness. Importantly for me, for MPs present today and for the work force, Michael said:"““Sheerness steelmaking can have a future and we will be doing all we can to save our steel in the coming weeks and months.””" It is of primary importance that that is reiterated, and that the site is not talked about in the past tense. At the time, there were reports that Thamesteel had been in talks with Trafigura to secure a deal for the long-term future of the plant that would have resolved Thamesteel's financial difficulties. However, Trafigura has so far declined to comment on speculation. We are all aware that the backdrop is one of a European steel industry struggling to cope with protracted weak demand in certain corners of the steel market, particularly in the long product construction sector. We are also all aware that the European sovereign debt crisis has made the situation worse by denting consumer confidence, as fears grow that Europe is set for lacklustre economic growth prospects this year.