Corus plant handed order lifeline

Jun 6 2009 by Karen Dent, The Journal

UNDER-threat Teesside Cast Products (TCP) has been handed a lifeline in the shape of new work to ensure the plant continues making steel until August.

The Redcar plant was awarded internal orders by parent group Corus, which will keep its 2,000 staff in work while a 90-day consultation continues on their future, after a multinational buying consortium pulled out of a 10-year deal to buy TCP’s steel.

Alan Clarke, One North East chief executive and Corus Response Group chairman, said: “These new internal orders from Corus are a welcome boost to the workforce and management who are working hard to secure the future of Teesside Cast Products.”

The company is continuing to look for work in a bid to avoid closure.

Jon Bolton, TCP’s managing director, said: “We have also identified sales opportunities with slab buyers around the world which we are urgently pursuing. The new orders are essential to enable us to keep operating. They also give us time during the consultation period to look at opportunities which could secure the longer-term future of the plant.”

The crisis at TCM started when the Italian-led buying consortium reneged part of the way through a contract to buy steel from the plant. Corus is taking legal action seeking compensation from the group.

But the waters have been muddied, as consortium member Marcegaglia still has a memorandum of understanding to buy the plant from Corus, which expires at the end of June.

Corus chief executive Kirby Adams is planning to meet steel magnate Antonio Marcegaglia to try to thrash out a commercial solution.

He also travelled to South Korea to meet representatives from consortium member Dongkuk.