THE owners of Redcar iron and steelworks are willing to offload the loss-making business as part of efforts to protect its Thailand-based parent company.

Following talks between SSI and its banks, Mr Win Viriyaprapaikit, SSI group chief executive and president, this afternoon told a news conference in Bangkok that options under consideration include selling the former British steel plant at Redcar, which has continued to incur heavy losses since SSI agreed to buy it from Tata Steel five years ago.

SSI announced on Friday it was suspending production at the Teesside works after succumbing to cashflow problems which have left its banks and suppliers owed millions. It has asked to delay bank payments due on September 30 until December 30 following an earlier agreement by its lenders to reschedule payments due on June 30 to September 30.

SSI and its three main lenders have been locked in talks over how to restructure debt worth more than £900m and repair the balance sheet of the beleaguered steel maker. The debt to be restructured also includes loans related to the Teesside works worth £508m, said Mr Win, adding that negotiations with all stakeholders related to SSI UK will be concluded next Wednesday.

Other measures being considered are an equity issue to generate funds from shareholders, and bringing in new partners, added Mr Win.

Today’s announcement will leave SSI’s Teesside workers none the wiser about prospects of the plant being reopened. Amid fears the works could remain closed indefinitely staff are being told to turn up for their shifts and carry out routine plant maintenance work on the site in the hope that it can restart production soon.

Teesside’s SSI workforce includes almost 2,000 plant workers, 1,000 contractors – many who have already been handed their notice – and local suppliers.

Trade in SSI shares was suspended today pending this afternoon's announcement. Its share price has plummeted 44 per cent in the past three months, as SSI's UK division suffered heavy losses following a sharp decline in the global price of steel and a glut of cut price exports from China and Russia.

The firm’s attempts to secure financial backing from the British government to protect jobs on Teesside have been turned down. Ministers fear it would break EU state aid rules, however campaigners have cited examples of steel plants in Italy and France being bailed out by their governments which regarded them as vital to their countries' economic success.