Corus says Teesside plant will be sold

Jan 26 2009 By Graeme King, The Journal

THOUSANDS of jobs at Corus Steel’s plant in the North East look to have been secured today.

Corus Teesside Cast Products (TCP), which employs around 2,000 staff in Redcar, is to be sold as its parent company sheds up to 2,500 across its UK workforce.

The move will guarantee jobs at the Redcar plant for the foreseeable future, managing director Jon Bolton said this morning.

But 47 engineering jobs in Corus’ northern engineering service on Teesside will be cut.

They are among thousands of Corus workers across the UK who expected to be told today they faced redundancy following a huge downturn in demand and a slump in orders.

But even though Corus TCP will soon be under new ownership - a deal is said to be set for completion by the summer - steel slab production would “absolutely” remain on Teesside, Mr Bolton said.

He added: “Although we can never guarantee jobs, ultimately, this is positive news. From being in a situation in 2003 of being a non core asset, this means we become a strategic part of another company.”

Corus is to dispose of the majority of its 100% stake in the Redcar plant, which it took over from British Steel in 1999.

The firm declined to name the buyer, but it said the deal was closely linked to negotiations begun last year on extending the consortium deal with five key customers, which in effect secured the plant’s future until 2014.

The news was less reassuring at Corus Tubes in Hartlepool where hundreds of workers arrived at dawn for their morning shifts.

Employees do not yet know how they may be affected by Corus's global job cuts.