STEEL unions last night demanded SSI come clean about its plans for the troubled Redcar works, after it emerged hundreds of contractors have already been laid off.

"The silence is deafening," said Paul Warren, chairman of the steel multi union, who is concerned workers and their families are being put through "torture" as fears mount that the plant will not reopen.

Hundreds of contractors employed at the former British Steel site by firms, including County Durham coal supplier Hargreaves Services, have already been handed their notice after Thai-owned SSI UK suspended production on Friday due to a cash crisis.

The Northern Echo: Unless Thailand-based SSI can repay bank loans its position as owner of Redcar steelworks is in peril.
A slab of steel leaves the production line at SSI as steelmaking returned to the region

The positions of up to 1,000 contractors are at risk in addition to about 1,900 workers and 50 apprentices employed by SSI at Redcar.

Staff have been told to turn up for their shifts this morning, but over the weekend the blast furnace was cooled and the site effectively mothballed as the company is unable to buy raw materials to make iron and steel.

About 150 workers at South Bank Coke ovens are being made redundant. The fate of the rest of SSI's workforce will become clearer in the coming days.

Amid reports from Asia that SSI's Bangkok-based parent company faces being delisted from the Thai stock exchange, unions called on company owner Mr Win Viriyaprapaikit to tell Teesside workers the full story.

Mr Warren added: "He has got to come out and tell us what they mean by "pausing" production. Is it a matter of restructuring the business before starting up again in the next few weeks or is it more serious?

"We understand that Win [Viriyaprapaikit] might be engaged in delicate negotiations behind the scenes. We get that, but while he stays silent he is putting people through torture. Not knowing what is going to happen next is agony for people who have families and bills to pay.

"I live in this community and all weekend people have been stopping me in the street and asking: "Is that it, is it over?" My honest answer is that I don't know," added Mr Warren.

Unions hope to sit down with SSI management today for talks on the future of the plant. They will also seek guarantees that workers will be paid their monthly salaries which are due this Friday.

"We are remaining positive because we have too," said Mr Warren, adding: "Friday was a blur - a bolt from the blue. Everybody knew the difficulties that the business has has been under, but it was still a shock when they said production was stopping.

"Now we need to pick ourselves up, stay focussed on the big prize and fight to keep steelmaking on Teesside."

In the meantime, The Bangkok Post reported at the weekend that SSI's banks are likely to agree that loan payments due this month will be pushed back until December 30 to prevent the Thai business from being dragged down by its debt-ridden UK subsidiary.