Sahaviriya Steel Industries (United Kingdom) finally signed the acquisition agreement to take over the old Corus plant at Redcar, Teeside from Tata Steel UK, 24th February 2011.
Over many years, The Cylinder Service Centre has had an excellent working relationship with all owners of this plant, but in the modern world there are no long-term guarantees that any customer supplier relationship will last forever. In particular, any new business owner will want to put their own stamp on things and so it was no surprise to find that SSI wanted to approach the running of the plant in a new way and reduce the overall number of suppliers it had on its books.
Reducing the number of suppliers is a good way to simplify procurement and make overall processes more lean. However, it is vitally important that if you put all of your eggs in one basket, that you make that basket as secure as possible. So, again, there was no surprise to find that SSI would not be placing further orders with The Cylinder Service Centre until a vigorous re-selection process had taken place.
Although confident that the track record of The Cylinder Service Centre and the facilities, personnel and new developments within the business were good enough to achieve a selection onto the SSI supplier list, we were by no means complacent. In the event we found the SSI personnel highly rigorous, with an eye for detail and quantitative measures. The process was certainly challenging - there was going to be no chance of a "shoe-in" on past performance alone.
You can therefore imagine our delight when The Cylinder Service Centre was finally selected on to the new preferred supplier list and even more pleased to receive our first order from SSI in the early part of September.
The restarting of the Redcar plant under the management of SSI(UK) is excellent news for the people of Teeside and a great opportunity for many redundant steel workers who must have thought there was no hope of future employment in this industry they knew so well.
The Cylinder Service Centre now looks forward to a long and rewarding supplier partner relationship with SSI(UK) and wishes SSI(UK) and the new team all the very best for the future.