Unions call for PM action on Teesside Cast Products

May 4 2010 by Karen McLauchlan, Evening Gazette

UNIONS stoked the pre-election furnace today by calling on both the Prime Minister and business secretary Peter Mandelson to force a disclosure over who was bidding for Teesside Cast Products.

As the Gazette exclusively revealed yesterday senior representatives of Thai steel giant SSI visited the plant for the first time last week, although it is believed SSI had made a firm offer for the works weeks before Corus took the decision, in December of last year, to mothball the plant.

The company has consistently refused to confirm who it is in discussions with and whether or not it has received a firm offer for TCP, arguing that to break confidentiality would jeopardise a sale.

But unions believe it is hiding behind legal process and came close today of accusing chief executive Kirby Adams of lying.

“Two weeks ago Kirby Adams, Corus chief executive, in the presence of senior Corus executives, told Community, in answer to a direct question, that there were ‘discussions, but that there had been no firm offers’ for TCP,” said Community leader Michael Leahy.

“Now we hear that SSI may have had a bid on the table when he gave his answer. Subsequently he refused to give a written assurance that Corus had not received a bid. Just what is going on?

“There are several questions that Community believes Corus and parent company Tata must answer now.”

Mr Leahy demanded to know why Corus mothballed the plant, which employed several thousand people until February of this year, if SSI – by then its biggest customer – was in the running to buy it.

He has urged Gordon Brown and Lord Mandelson to force Corus to reveal if there has been a formal takeover bid.

He said he also planned to speak to Ratan Tata, chairman of Corus parent, the Indian based Tata Group.

“It looks more and more like Corus aren’t being straight with the TCP workforce and the people of Teesside about whether they have received a bid from SSI or any other party to purchase TCP and preserve steelmaking and thousands of jobs in the wider community.”

Teesside politicians today welcomed news of a potential bid from SSI.

Vera Baird, Labour candidate for Redcar, said it was “not a surprise” that an interested negotiator with Corus for the purchase of TCP appeared to be SSI.

“SSI need more than six million tonnes of steel per year and know from earlier custom that we can provide three million tonnes of our excellent quality slab to them which will guarantee much of their supply,” she added. “They are a strong company, financially sound and innovative and would be a welcome partner if a deal is to done. With such constant demand for steel matching our ability to supply, there should be a good future for the steelworks if the figures add up.”