MP Vera Baird positive on Corus sale plan

Mar 19 2010 by John Hill, The Journal

REDCAR MP Vera Baird believes moves to bring Teesside’s Corus plant back to action and save the 1,600 threatened jobs are “a couple of steps further on” but remain “on a tightrope”.

The barrister said she had learned from sources that negotiations with a potential buyer had moved to the purchasing company’s headquarters abroad. She added that the Government “had not been approached” at this stage for a subsidy to secure any sale.

Parent company Tata Steel mothballed the plant last month after failing to find a buyer after its main client walked away in May last year.

Ms Baird wrote to Tata Steel requesting an update on progress on March 10. She received a response a week later from chairman Ratan Tata saying that Corus management had “actively explored every option” before making the decision and that it would re-open if market conditions improved.

He said: “The decision to mothball the plant was taken when all these efforts failed and when it was no longer possible for Corus to continue to bear the heavy burden of operating losses from this facility.

“It goes without saying that if market conditions were to improve to an extent where the Teesside facility could operate profitably, we would not hesitate to recommence operations at the plant.”

While the MP welcomed his “quick” and “positive” response, she admitted she was “in a hurry” to see a breakthrough.

She said: “It’s massively important to the region and we’re determined they should leave no stone unturned.”