THE impact of SSI’s troubles will be felt at suppliers, the local council, and across the North-East economy, where almost 6,000 jobs and billions of pounds of exports are at risk.

It is estimated the firm owes suppliers between £50m to £100m. SSI owner Win Viriyaprapakit has given no indication of when, or if, debts will be repaid.

SSI’s Thailand-based owners have become renowned for not paying bills on time. Failure to settle payments will put some smaller firms out of business and leave large suppliers, as well as Redcar and Cleveland Council, millions of pounds out of pocket.

Among its key North-East suppliers are Teesport operator PD Ports which earlier this year signed a seven year deal with the steelmaker.

Industrial gas business BOC has invested £25m in its Teesside site to supply SSI for the next 15 years.

Other major business creditors include coal and transport business Hargreaves Services of Esh Winning, County Durham; utilities firms including Durham-based Northumbrian Water, raw materials supplier Lafarge Tarmac, and suppliers of industrial services and transport.

More than 7 per cent of the region’s exports come from SSI and the hiatus in production will wipe billions off the region’s balance of trade.

Business Minister Anna Soubry has asked Amanda Skelton, chief executive of Redcar and Cleveland Borough Council, to lead a task force of business leaders, MPs, unions and stakeholders and find ways to support workers and their families, and prepare for the knock-on effect across the North-East economy.

Mike Matthews, president of the North East Chamber of Commerce, said: “This is truly terrible news for those who have lost their job. It’s devastating also for the Tees Valley, which has a proud history of steelmaking – the plant has long been at the heart of a great many communities in the area.”

“The business community and organisations like the NECC will be crucial in ensuring that those affected are supported.”