18th Sep 2015 13:12
LONDON (Alliance News) - Hargreaves Services PLC on Friday noted the plans outlined by Sahaviriya Steel Industries to mothball steelmaking works at the Redcar plant in the north east of England, saying it is awaiting clarification on what impact this will have on its operations.
Hargreaves, which supplies solid fuel and bulk material logistics services, said it is awaiting clarification from SSI on how the plans to mothball steelmaking at the site will hit the material handling and coal procurement services Hargreaves provides to the Redcar plant.
These contracts contributed around GBP4 million of operating profit for the company in the financial year to the end of May, about 10% of the GBP38.1 million it made in the year.
SSI said on Friday that production at the Teeside steel plant will be "paused", saying preparations are underway to cut production during the day and citing ongoing issues with the supply of raw materials and services as the reasons for the decision.
The move will put around 2,000 jobs at the plant at risk. SSI acquired the plant, formerly run by Tata Steel, in 2010.
Hargreaves shares were down 2.9% to 388.5 pence on Friday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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