Teesside didn't give up on steel making a comeback
Confidence is returning
REKINDLING steelmaking on Teesside represents a major boost to the local economy.
When the mothballing of TCP was announced it triggered around 1,600 direct jobs and thousands more contractors permanently employed on the plant.
The economic impact on the wider supply chain and local community would also run into hundreds of millions.
A deal with SSI now brings with it the potential for new jobs and new investment for Teesside.
Joanne Fryett, head of member relations at the North East Chamber of Commerce, said: “I think it’s putting positivity and confidence back in the market.
“I think people who are looking to invest will see it as a fantastic thing for the area.
“The benefits for the supply chain are a key thing in this.”
She added: “Steelmaking is at the heart of our local economy and it was a bitter blow when the plant was mothballed. The announcement is a new chapter for steelmaking on Teesside and gives hope to the highly-skilled workforce and the talented wider supply chain that this plant will once more be a major player in our economy.”
Stan Higgins, chief of the North East Process Industry Cluster (NEPIC), said the deal would be a positive boost for other sectors beyond steel.
“It’s very positive news, particularly for the support companies.
“It will be really good news for the shared infrastructures - the ports and railways.
“I’m surprised it has happened so soon but the market for steel has picked up and economies around the world have picked up too.”
PD Ports - which has a direct rail link to the TCP plant to enable the export of slab steel by sea - faced making its own job cuts on the back of the mothballing of TCP.
While 60 staff volunteered to leave the business, growth in other business areas - such as its container handling operations at Teesport - meant no further cuts were needed with staff redeployed into other areas of the business.
David Robinson, PD Ports’ Group chief executive officer said: “This is potentially excellent news for Teesside and for the wider Tees Valley and North-east communities and their economic prospects.
“This deal is not concluded and there remains a great deal of work to be completed before a conclusion is reached.
“We have had no dialogue with Corus and SSI with respect to this deal to date, but as a significant and long-term supplier to Corus Teesside Cast Products we expect to be approached, amongst others, over the coming months.”
Tony Sarginson, regional manager for manufactures organisation EEF in the North-east and member of the Corus Response Group, said the deal would be of huge benefit to the supply chain.
“Manufacturers and suppliers will benefit, then there’s the service industry - from food outlets to cornershops - who will too.
“Obviously the immediate area around Teesside will benefit, but I do think we will be pulling in skills from around the region.”
