Lord Mandelson wants more flexibility from Corus

Feb 24 2010 by Peter McCusker, The Journal

BUSINESS Secretary Lord Mandelson yesterday confirmed bidders are still talking to Corus about buying the Teesside Cast Products (TCP) and called on the steel company to be more open-minded in discussing a takeover.

But he urged Corus to be more “flexible” in those discussions, currently covered by confidentiality agreements, with the Government able to “introduce cash” to help progress.

The Business Secretary’s comments come after Gordon Brown said the Government was ready to “help” Corus and work with any potential buyer for TCP, but declined to discuss possible financial support.

The Prime Minister also rejected the idea of the Government buying a stake in the plant to keep it open and 1,600 workers in their jobs.

Speaking at the Department for Business in London, Lord Mandelson – the former MP for Hartlepool – underlined his personal commitment to finding a future for the Corus steel works.

“I told my department and my colleagues in Government that we must throw everything we have behind Teesside’s future and the reopening of the Corus plant.

“We are not throwing in the towel, we are not going to accept closure without lifting every stone and stretching every muscle in Government in order to get an alternative way forward for the Teesside plant,” said the Business Secretary.

He added: “Yes, there are other companies with whom Corus is talking and with whom we are also engaged. They are restricted by what they can say by confidentiality agreements which Corus has insisted on for reasons I understand, but which I think need to be made rather more flexible so that Government can help facilitate the change and the reopening of this plant, which we want to see happen.”

He also called for positive dialogue about the plant’s future, saying: “Corus are not being obstructive. But what I have said time and time again is that in a situation like this you mustn’t cut off engagement from those expressing an interest because you don’t know how strong a future partner they may be until you’ve explored fully with them what sort of partnership could be created. So I realise that Corus believes this is their show, this is their plant, that they must be in the driving seat. I respect that and I am not saying that Government should become a back seat driver.

“What I am however saying is that Government can sometimes do things, facilitate things, oil the wheels and introduce cash and investment that can make a difference when these deals are being discussed. So don’t put us out of the car.”

And Lord Mandelson promised to push the boundaries of European Union state aid rules, which limit how much help Governments can provide companies in their countries.