Time running out to find a buyer for TCP

Feb 12 2010 by Karen Dent, The Journal

ANGER is running high over the lack of action to save Teesside Cast Products (TCP) and the jobs of its 1,600 staff as the deadline for its partial mothballing nears.

But there is a sliver of hope that rising steel prices could keep the Redcar plant ticking over until a buyer can be found for the Corus-owned site, said Redcar MP Vera Baird.

Ms Baird attended a meeting with union boss Geoff Waterfield, regional minister Nick Brown and TCP boss Jon Bolton earlier this week as the February mothballing deadline nears.

Mr Waterfield, chair of the multi-union committee, warned the whole region would suffer if production at the slab steel producer ended.

“There will be a number of medium and small business that will collapse. The high streets will suffer. Everyone will have to pick up the bill for welfare and there will be repossessions,” he said.

“We have had a lot of help from Vera (Baird, Redcar MP) and Nick Brown (regional minister) but we need a bit more than support – we need real action.”

Steel prices – both for the finished product and specialist slabs – is rising. Severe weather in slab-producing countries Russia and the Ukraine has tightened supply and analysts expect firmer prices to continue.

Mr Waterfield said: “The big movement in slab prices, which is very healthy, would be fantastically useful for TCP. My belief is we could continue making slab while we look for a solution.”

Ms Baird said: “If the price continues at its current trajectory, you can’t be sure we won’t get to a point where it is worth Corus’ while keeping it going pending a purchaser.”

But steel industry insiders say Corus is pushing up finished steel prices to counteract the increases in raw material prices and slab steel prices are not moving as quickly.

TCP had faced mothballing at the end of January but won a stay of execution until the end of this month or when its raw materials run out, while Corus and the Government seek a buyer. Ms Baird said that work was ongoing.

“Our Government will do all that it can to support the survival of TCP as a going concern,” she said.

“As Corus has made clear, that requires a purchaser for the plant who will have an end use for our steel. At present there is no such deal.”