Hope for jobs as shifts increased
RECOVERING demand for construction strength steel in Asia could stave off job losses at Corus’ Lackenby beam mill.
The company announced earlier this year that 150 out of more than 470 jobs would go by way of compulsory redundancy, but this week it said it was increasing the number of shifts from 15 to 19.5 following a surge in demand for its products.
The mill produces steel columns and beams for the construction sector and has supplied some of the world’s most famous landmarks, including the new World Trade Centre in New York and Heathrow Airport’s Terminal 5.
“We are still in consultation with the unions and have not confirmed the number of job reductions we need to make at Teesside Beam Mill to align operating costs with activity levels,” the company said today.
The mill had been hit by a 30% reduction in output from Teesside Cast Products plant when a buying consortium withdrew from a 10 year deal, throwing TCP into jeopardy. The mill was forced to reduce shifts as it moved from a seven to five day a week operation.
TCP, which is now looking for a buyer, also recently saw a revival in orders, which have extended production until the end of September.
Corus said there was no connection between the two.
Overall, the steel market has seen rising prices as inventories are depleted and confidence returns.
