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From the raw materials . .

23rd January 1992
Page 40
Page 40, 23rd January 1992 — From the raw materials . .
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Which of the following most accurately describes the problem?

Mi It is not only the locals of Lanarkshire who are in shock over the premature closure of the Ravenscraig steel works. From South Wales to Cumbria, hauliers are scrambling to find alternative work.

The distribution chain that enables Ravenscraig to operate starts with the movement of raw materials. To produce steel slabs Ravenscraig requires coal from Hunterston docks in West Scotland and lime products from Shap, in Cumbria.

Within the plant, operators are hired to move machinery. The finished slab is then taken to British Steel plants at Llanwern and Port Talbot in South Wales where it is processed into steel coil; some slab is exported.

Many of the hauliers working at Ravenscraig have complained of ill-treatment over the years — they say that British Steel keeps them in the dark about changes and pays them low rates, especially for the movement of steel slab.

The final blow, the decision to close Ravenscraig this September without any warning, is not out of character, they say. British Steel had previously pledged to keep Ravenscraig running until 1994.

All of its hauliers will be affected by the decision. Many are sensible enough to have other customers; others realised that the writing was on the wall when Ravenscraig's strip mill shut last year. Arthur Hewetson, managing director of Penrith-based Barnett and Graham, has been caught halfway through a two-year contract at Ravenscraig. "I'd like to ask them to pay me from September till March 1993," he says wryly. His company carries raw products from the British Steel lime works at Shotton to Ravenscraig and other British Steel works across the UK. Hewetson can carry up to 1,700 tonnes a week.

He has 30 vehicles and sub-contracts up to 50 owner-drivers.

The Ravenscraig work accounts for £250,000 out of a £5.5m annual turnover: If we'd known this was coming we could have planned better. Eight months is nothing."

British Steel not only proved to be a poor communicator, but also a bad payer. Hewetson claims that rates have dropped over the past year and Ravenscraig has extended its credit to 14 days.

Yuill and Dodds, the Strathaven-based haulier, has worked for Ravenscraig for 12 years carrying coal and steel. It was one of the few companies to support British Steel during the 1984 miners' strike. it acted as a lifeline, defying pickets and bringing in coal to the plant.

Now it feel it has received little thanks and is pessimistic about its future: "I only see doom and gloom," says transport manager Brian YuiLl, there is no future in the Scottish haulage industry? Jimmy Yuill has been threatening to retire for the past two years and is now"fed up", says Brian Yuill.

Yuill and Dodds hauls coal from Hunterston docks to Ravenscraig, but nowadays it only makes up a small amount of the company's work. It has 15 tippers working for the plant one or two days a week. It currently operates 62 vehicles and employs 85 staff. In 1991 it cut its fleet by 10 vehicles, and fears it will have to do the same this year. Getting work in Scotland is just like "stabbing in the dark," says Brian Yuji], who also complains about low rates from British Steel. The company now handles more flat-bed work.


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