Corus rescue deal is being discussed

Jan 22 2010 by William Green, The Journal

A RESCUE deal to keep the threatened Corus steelworks on Teesside open is being discussed by the Government.

Business Secretary Lord Mandelson last night revealed that talks about finding a shared owner for the Redcar plant were ongoing with Corus’s Indian parent company Tata.

The Journal also understands that the Prime Minister has been active in trying to find a solution to keep the Teesside Cast Products (TCP) plant open.

And interest in a potential deal for the plant is believed to have come from Abu Dhabi and Qatar in the Middle East.

The news will provide a morale boost for the 1,600 workers who face losing their jobs as the steelworks is due to be mothballed next month.

Corus has decided to keep the TCP plant open for several more weeks. It was due to close at the end of this month after losing vital contracts last May when a consortium of buyers walked out halfway through a 10-year deal to take most of the plant’s output.

Lord Mandelson said: “They are mothballing this. They are not closing it. Now mothballing creates hope that it can be unmothballed and as you know, production is going to continue for six weeks longer than we originally thought.”