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Corus to mothball Teesside plant
ONE of the UK's biggest steel plants is to be mothballed, threatening the future of up to 2,000 workers.
Workers at the Teesside Cast Products plant in Redcar learned the grim news this morning ahead of a 90-day consultation on the plant's future.
Union leaders expressed "outrage" at the news and said the livelihoods of thousands was now in jeopardy.
Owner Corus said the development had become "unavoidable" because of the termination of a contract by four international steel slab buyers.
Corus said: "The company has today begun discussions with employees and their representatives about what can be done to mitigate the impact of mothballing the plant on the 1,920 employees and what future action may be needed. Any decision to mothball is likely to lead to a very significant number of redundancies."
Corus had agreed to sell a majority stake in the plant to a consortium led by Italian firm Marcegaglia, but the steel giant said the consortium had "unilaterally and unreasonably" initiated moves to terminate the contract, making Redcar "unviable."
Anglo-Dutch firm Corus, which has been owned by Indian conglomerate Tata since 2007, said it was using all legal means to ensure the terms of the 10-year contract were enforced and that the four members of the consortium lived up to their contractual obligations.
The company said it was exploring alternative options that might secure a viable future for the Teesside Cast Products site at Redcar (TCP) and its employees.
Corus chief executive Kirby Adams said: "I am extremely disappointed that the consortium members have seen fit to take this irresponsible action.
"Their unilateral termination of a legally binding 10-year contract could bring to an end a fine heritage of steelmaking at Teesside.
"We regret the distress their action will cause TCP's dedicated employees, who have worked steadfastly in the interests of the consortium."
Michael Leahy, leader of the steelworkers' union Community, said: "This is appalling news. We cannot believe that the consortium is taking such irresponsible action that will have a devastating effect on our members and the whole community in Teesside.
"The consortium has made this disgraceful move, knowingly jeopardising the livelihoods of thousands of workers who are the innocent victims of this.
"These multi-nationals have reaped hundreds of millions of pounds in profits and are now walking away from their legal, moral and social responsibilities.
"We understand Corus is pursuing the consortium to honour the contract. Corus has the full support of the union. Community has also instructed its own lawyers to investigate what action can be taken against the consortium to get justice for our members."
The Redcar plant is one of the oldest and biggest steelworks in the country and supports thousands more jobs of contractors.
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Saturday 26 May 2012
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