It has been announced that Thamesteel has gone into administration.

The 400 staff at the site in Brielle Way, Sheerness, were given the news this afternoon (Wednesday).

It has happened after a proposed investment deal with major international oil firm Trafigura fell through.

Staff were told yesterday they would not be paid today and it has since emerged they will not be receiving their January wages.

There will be a meeting for staff at the site tomorrow.

A spokesman for Community Union, which represents workers, said: "This is devastating news for everybody who works at Thamesteel and for the wider community in Sheerness.

"Community believes that Sheerness steelmaking can have a future and we will be doing all we can to save our steel in the coming weeks and months.

"We will also ensure our members' rights are upheld at this difficult time.

"Once the administrators are appointed, we are willing to work with them to deepen and widen the search for an investor and we want to work with anybody who wants to give Thamesteel a future.

"Any investor who did come forward would find a proud and committed workforce dedicated to continuing production at the UK's first mini-mill."

MP Gordon Henderson has reacted to the news.

He said: "It is desperately sad for all those affected; a bitter blow for the community.

"I have been working closely with the management and trying to get the government to support heavy industry in general.

"I will be contacting [Business Secretary] Vince Cable to try and fix a meeting on this for early next week. I will also be raising the matter in parliament.

"Ideally, another steel maker would come in and take over the business but we'll have to see.

"I am doing everything I possibly can to see if there is any way the works can be rescued by another maker."

• Are you affected by this news? Contact the news desk on 01795 580300.