Last week the Thai parent company announced it was going to mothball the facility but has since gone into liquidation meaning it's unlikely to re-open.
SSI said it had to "pause" work at the plant in September because of poor trading conditions and a massive fall in the price of steel.
Revd W Arthur Harbottle, a Methodist Minister in Redcar said: "In addition to the 1700 jobs losses already announced at the plant many more will be lost in the local support & service industries - this number has yet to be calculated but it will have a major negative effect on the employment opportunities in the area which already has high unemployment and high deprivation.
"The difficulties which will be faced are highlighted by the plight of one family known to the church which has two sons and three grandsons who were formally employed at the plant.
"Clearly, this level of job loss in the community has a huge effect on the morale of the area.
"Though many of the workers at the plant are highly skilled, their skills are not easily transferrable to other industries.
"The local Foodbank, which local Methodist Churches support with great commitment, already assists many families and individuals in the area and sometimes struggles to cope with the demand.
"This number of job losses is bound to add further pressure on the already stretched services.
"Local people are proud of their industrial heritage and want to continue to contribute to the local economy but this news has caused huge concern for the immediate future of the local economy."