Fiona Trott
BBC News

SSI made a loss of about £200m last year and in truth workers were perhaps expecting this news.

The plant in Redcar on Teesside employs about 1,700 people, although some 450 jobs will remain.

But there's many more thousands of jobs tied up in the steel supply chain.

One man told me: "It's heartbreaking. It's going to become a ghost town."

In an indication of the troubles currently affecting the steel industry, steel company Tata has just confirmed it will mothball one of its production lines in Shotton, North Wales.

While this is unrelated to SSI's decision on Teesside, it shows how a global slump in the price of steel is having a significant impact on the market in the UK.

At a press conference after announcing its Redcar plant will be mothballed, SSI boss Cornelius Louwrens says they don't know how long that will be for but that it could be up to five years. 

They say the price of steel needs to recover before there's any prospect of the site reopening. 

SSI boss Cornelius Louwrens admits this is "devastating" news for the area. 

He says negotiations are under way about buying the next shipment of coal - but it needs to be decided if the parent company or the government pays for it. 

But he does say the site has enough coal for another week.

Image source, PA

SSI boss Cornelius Louwrens admits they haven't paid all their contractors as they should have.

He adds some 450 jobs will remain, while staff are on 45 days' notice of redundancy.

Image source, PA

SSI boss Cornelius Louwrens is giving a news conference on the decision to mothball the Redcar plant.

He says they are "desperately" trying to keep the coke ovens alight, and that they would welcome any government help.

A task force set up to help people affected by the Redcar SSI steel plant decision will meet this week.

Amanda Skelton, chair of the group and chief executive of Redcar and Cleveland Borough Council said: "The task force will be doing all we can to help the steelworkers and families affected by the mothballing announcement.  

"The task force is meeting again this week and has already started organising a programme of support to help people and businesses through this difficult time.”

The North East Chamber of Commerce has expressed concern at the decision to mothball the SSI Redcar plant.

Chief executive James Ramsbotham said: “This decision will have a significant impact throughout the region. 

"The business community stands ready to work together to support the company and workforce as we continue to hold the ambition to retain steel-making on Teesside for the future.”

Redcar and Cleveland Borough Council leader Sue Jeffrey says mothballing the SSI steel plant is "devastating news" for the region.

She said: “My heart goes out to everyone affected by the announcement. 

"The steelworks is a huge part of our history and this is a real blow to our steelworkers and their families, our communities and our local economy.

“We have worked so closely with SSI in recent years to support and nurture the business and I am bitterly disappointed that it has come to this."

BBC Tees
www.bbc.co.uk/BBCTees

One SSI worker in Redcar told our reporter Andy Bell he simply had a "sinking feeling". 

"I look at my little boy and I just want to cry because I don't know what's going to happen in the future," he added.  

UKIP MEP Jonathan Arnott is also calling for the government to intervene in Redcar, external.

He says: "The high pound, Chinese market dumping, high cost of raw materials and especially government-caused artificially-inflated energy prices in an energy-intensive industry have contributed to temporary unprofitability. 

"Steel is trading at a fraction of the price it did in 2010, but it will recover. This is a textbook example of the need for state aid, because now much-needed skills will disappear from our economy."

The general secretary of the Community union, Roy Rickhuss, has criticised the way SSI handled the situation at the Redcar steel plant.  

He said: "We've seen it coming in a sense that SSI have been reporting for some time that they're having some financial difficulties; what we haven't seen coming, though, is the way that the company have conducted themselves during this process - a lack of consultation, a lack of discussion, and even the announcement this morning is riddled with more questions than there are answers."

CBI chief John Cridland tells @SkyNews, external that there is a case for the EU to investigate if mountains of cheap steel from Russia and China are "valid" and "economic".  

He adds that he thinks there is a case for them to investigate possible Chinese and Russian violations of trade rules on the dumping of steel.

Here's how other media are reporting the Redcar steel plant decision:

The Gazette says the job losses could run into thousands, external.

The Hartlepool Mail says SSI 'regrets' the move, external.

The Northern Echo reports on a devastated community, external.

The Telegraph says mothballing is due to a deterioration in steel prices, external.

Jane Collins, UKIP MEP for Yorkshire and North Lincs, adds:    

Business Minister Anna Soubry adds: "The steel industry across the UK is facing very challenging economic conditions. 

"The price of steel has almost halved over the past year, with over-production in the world market.

"While government cannot alter these conditions, I have called a steel summit to see what more can be done to help our steel industry."

Unite national officer Harish Patel described steel as "lifeblood of the local economy", which "runs through the community's veins". 

He added: "The Government's much vaunted Northern Powerhouse risks being nothing more than empty rhetoric unless it steps in with assistance to save the SSI plant on Redcar.