Kumar’s Tata talks to save steel jobs

Jun 9 2009 by jez Davison, Evening Gazette

A TEESSIDE MP has held talks with bosses from Tata Steel to try and save jobs in the region.

A 90-day consultation began last month at Corus’ Teesside Cast Products with a view to closing the plant after four of its buyers walked out on a ten-year deal, placing 2,000 jobs in danger.

Middlesbrough South and East Cleveland Labour MP Ashok Kumar has now met with senior directors of Corus’ owner Tata Steel to put the case for the continued viability of TCP, including Dr Debanshish Bhattacharjee, director of research development and technology from Tata Steel.

Mr Kumar said: “I pressed on him the importance of the Redcar and Lackenby plant and the versatility and excellence of the steel-making tradition on Teesside. I pointed out the productivity and cost gains that had been made on the complex over past years, and the need to press on with trying to sell the plant as a supplier of steel slab to the world steel re-rolling market.

“I also pointed out the geographical advantages of the plant, the deep water anchorage and the links with PD Ports’ own operations on the neighbouring site.”

On Friday there was some better news for TCP when it emerged the site had received an order for 300,000 tonnes from Corus, meaning the plant can continue to operate until August - when a consultation on mothballing the site ends.

It also gives people trying to save the plant more time to come up with a rescue plan.

Meanwhile the Corus Response Group is continuing to plan for all possible scenarios surrounding the plant’s future, including working on contingency plans in case redundancies have to be made.

Mr Kumar added: “I believe that the worst of the recession is now behind us, and that has to be encouraging for Corus and for Teesside.”

Last week Tata Steel, the UK company’s Indian parent pledged to pump £400m into the company, which will be used to help pay off the £3.7bn it borrowed to acquire Corus - including its now threatened Redcar site - two years ago.

However yesterday analysts cut the rating of Tata Steel by one notch, citing a weak outlook for the steel industry.

Moody’s Investors Service - one of the world’s largest credit rating agencies - cut the rating from Ba2 to Ba3.