Business and local authority leaders in Derby and Derbyshire are working together to help firms affected by the closure of one of the UK’s largest steelworks to access grants from an emergency fund set up to support its suppliers.
SSI UK, based in Redcar, North Yorkshire, was wound up in October, with the loss of 1,700 jobs. A number of businesses that were in its supply chain are based in Derby and Derbyshire.
As a result of the closure, the Government’s Department for Business, Innovation and Skills has made £16m of grant funding available to help companies impacted by the closure.
The fund is managed by BE Group on behalf of the SSI Taskforce and Tees Valley LEP and it extends to any business in the UK that was in SSI UK’s supply chain.
Grants of up to £140,000 per business are available to provide immediate aid in the form of working capital to support these companies to continue trading and seek new business.
The fund will support SSI suppliers to safeguard jobs and provide the management team with an opportunity to restructure finances and bid for future work.
For SSI supply chain companies less severely impacted, a capital grant scheme is open to support businesses anywhere in the UK affected by the closure of the SSI, to modernise, diversify and grow.
The scheme is very similar to the successful Derby Enterprise Growth Fund and is designed to support projects that will create new, sustainable, private sector jobs and support investment.
Grants of up to 50% of eligible expenditure are available, between £10,000 and £140,000 in value.
Scott Knowles, Chief Executive of East Midlands Chamber*, said: “Although it’s not a local company, the closure of SSI UK was a sad day for the British steel industry.
“A number of local companies were in SSI’s UK supply chain and the Chamber is keen to ensure that any businesses affected can access this funding to help support them during this transition period, as they seek out new opportunities.”
Cllr Martin Rawson, Deputy Leader of Derby City Council, said: “These are difficult times for a great many people affected by the sad decline of the steel industry here in the UK.
“I am encouraged that there is at least some light at the end of the tunnel as far as small businesses in the supply chain of SSI are concerned. The Council will be glad to support any local companies that feel they would like to tap into this new grant fund.”
Cllr Anne Western, Leader of Derbyshire County Council, said: “Derbyshire has a strong and proud tradition of manufacturing and the closure of the Redcar steelworks will have a direct impact on local businesses and jobs.
“Steel production is a global industry but the effects will be felt locally. We welcome the launch of the emergency fund and will work closely with partners and local business to support firms affected by the recent upheaval in the UK steel industry.”
Local SSI UK suppliers can get more information about the funding and how to apply for it by calling 01642 939386 or emailing TVBSS@be-group.co.uk.