Way opened for new interests in steel plant
Jun 16 2009 by Iain Laing, The Journal
THE two companies in talks to buy the threatened Corus steel plant on Teesside have opened the way for other firms to take a stake in the business.
Italian steel buyer Marcegaglia and South Korean firm Dongkuk have agreed to forego the right of exclusivity which was originally a condition of their possible joint purchase of the Redcar Teesside Cast Products (TCP) plant, which has nearly 2,000 staff.
TCP is currently facing closure within months after a consortium of four companies, including Marcegaglia and Dongkuk, pulled out of an agreement to buy most of its output for the next five years.
Corus is currently planning legal action against the consortium for breach of contract but had also been in discussions to sell the business and the lifting of exclusivity on the talks opens the way for more investors to take a stake.
There has been a stand-off between the consortium and Corus while legal action is under way which the buyers say has hindered the possibility of a another commercial agreement.
Meanwhile TCP has been awarded internal orders by parent group Corus, which will keep its 1,920 staff in work until the end of August.
Corus bosses are urgently looking for new opportunities with slab buyers worldwide which would buy it more time to create a sustainable future for the plant.
