Bid to save 2,000 jobs at Corus steel plant

May 13 2009 by Andrew Mernin, The Journal

THE Government and leading North East public and private sector figures have started to step up the pressure on the overseas companies who have pulled out of a deal which guaranteed the future of the North East’s biggest steel plant for the next five years.

Steel company Corus plans to mothball its Teesside Cast Products plant, which employs nearly 2,000 workers, after a consortium of steel buyers walked away from a 10-year deal it signed in 2004 to buy 78% of its output.

Yesterday saw the first meeting of the high level North East taskforce set up to help secure the future of the plant. Central to talks at TCP’s Redcar base was how pressure could be brought to bear on the Government to access emergency cash from the European Union

The money from the Globalisation Adjustment Fund would ease the pain for workers and even buy breathing space for the plant, which must plug an enormous gap in orders if it is to survive the walk-out of its main buyers.

Corus has said it will fight the termination of the consortium’s contract by the four non-UK members of the group in the courts – but any decision in its favour is likely to be too late to save the Teesside plant.

TCP managing director Jon Bolton said: ‘We are looking at every possible option to keep this plant open as a viable business for the future. I’m very encouraged by the support of all partners at today’s meeting. The hard work is under way to protect the jobs of our skilled and dedicated workforce and to plan for their future welfare.’