Redcar SSI steel plant: Locals fear knock-on effect

The steel plant is a major employer in Redcar

As unions and SSI executives discuss the mothballing of the Redcar plant, there are fears of a knock on effect on other businesses in the area.

The plant's Thai owner announced on Monday that there was "no other option", and 1,700 jobs would be lost.

Middlesbrough MP Andy McDonald said once contractors and the supply chain were taken into account, the number of job losses could be as high as 9,000.

Some suppliers have already begun laying off staff.

Neil Doyle, from Peterson's Engineering in Redcar, said his company was owed more than £150,000 by SSI.

"It's been really difficult, we had to cut deep and hard straight away", he said.

"Six weeks ago we had 21 employees, and we're now down to 14, and they're all on three months' notice.

"The directors are looking elsewhere for other contracts, and we'll just have to see what happens in the next couple of months."

Andy Kelly from the nearby Workx cafe, which is used by workers at the plant, said he was looking at "survival plans".

He said: "We've decided we're not going to take a wage for the next 12 months if we have to, to keep the business going.

"What we'll do after that I do not know."