SSI UK struggles in "difficult" yearBy Matthew Ord, Digital Staff Writer
SSI UK, which runs the former British Steel works at Redcar, has reported huge losses during a "difficult and challenging year" and auditors have expressed concern about its ability to trade as a going concern.
The company made a loss before tax of £309m for the year end 31 December 2013, compared with a loss of £476m for the same period the year before.
Writing in the strategic report, director Win Viriyaprapaikit said the company has had a difficult and challenging year as a result of a "number of factors".
"The world economy is primarily the determinant behind achieved steel prices," he said. "In Europe the significant decline in steel demand seen during 2012 continued through 2013 and the overall fall in demand since the 2008 financial crisis is around 30 per cent.
"In anticipation of the changing economic environment, the company has continued to invest in capital expenditure and is considering several projects to both reduce underlying costs and increase business revenue."
David Hutchinson, senior statutory auditor at KPMG, said in the report: "A return to profitability is forecast but is dependent on volatile steel prices."
The company employs 1,794 staff.