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Losing British Steel Would Be Madhouse Economics - Cortes

22 May 2019

TSSA General Secretary, Manuel Cortes, has warned the Government that closing British Steel would amount to "the economics of the madhouse."

The comments come after the announcement that British Steel is set to be placed into insolvency, putting 5,000 jobs at risk and endangering 20,000 in the supply chain.

British Steel’s Scunthorpe plant produces world class rails used across the UK and Europe.

Manuel Cortes said: “The Government must act now to do everything possible both to secure jobs at British Steel and safeguard the future of this strategically important business – anything less is the economics of the madhouse.

“These plants produce world class steel which is not only used on railways across Britain but is exported to Europe.

“British Steel has had tens of millions invested in it already and closing it would damage our trade and economy; it would also leave thousands of workers languishing on the dole. Neither of these things can be allowed to happen.

“The first thing Theresa May must do it send a clear signal that she will nationalise the company – that would bring about much needed stability at the stroke of a pen.

“However, what must not be overlooked is that inescapable fact that Brexit is the underlying problem. We need to draw a line under Brexit and ditch it now – before still more jobs go to the wall and communities are destroyed.”

British Steel’s main plant at Scunthorpe is a leading producer worldwide of rails. It has supplied Network Rail with more than half a million tonnes of high-quality rail over the past five years - 95 per cent of Network Rail’s requirement.

In September 2018 British Steel signed a two-year contract extension to supply Network Rail with a further 4,000km of rail. In December last year it signed a deal to supply 86,000 tonnes of rails to Italy.

 

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