Steel group denies abandoning Redcar sale
May 21 2009 by Andrew Mernin, The Journal
THE parent company of Corus last night attempted to quash speculation that it is no longer willing to sell its troubled Redcar plant to Italian bidders.
A senior Tata Steel executive in Mumbai reportedly said yesterday that the £300m-plus sale was off after the firm leading the bid – Marcegaglia, of Italy – went quiet on the deal.
The issue is complicated by Marcegaglia’s membership of a steel-buying consortium which last month tore up a contract to take steel from Teesside Cast Products’ plant until 2013, putting 2,000 jobs at risk. But a statement issued by Corus chiefs on behalf of Tata in the UK denied that a decision had been taken not to pursue the sale of Teesside Cast Products to Marcegaglia and partner Dongkuk.
“It remains the case that the prospective buyers have not indicated to Corus that they wish to withdraw from the due diligence process and Corus looks forward to the buyers revealing their longer-term intentions regarding the plant.”
Redcar MP Vera Baird is due to fly to Mantova today to meet Mr Marcegaglia. Between them, Marcegaglia and Dongkuk had agreed to buy an 80% stake in TCP and promised investment and new life for the Redcar works.
The consortium reneged on the 10-year deal last month, wiping out 78% of the plant’s orders, and it has been struggling ever since to make up throughput from Corus.
Meanwhile, Corus steelworkers in Wales have hit back at a move to withdraw their cash bonuses.
Bosses at Corus say giving up the money could save hundreds of jobs at its Port Talbot plant.
Company spokesman Robert Dangerfield said it would prevent job losses for a guaranteed time, possibly a year.
The number of jobs in question had not been calculated, but would run into “the higher end of three figures”, he said.
However, workers say the idea of axing an agreed part of their pay structure comes at a time when there are too many managers and when parent company Tata has money to spend on sponsoring big sporting events.
One said: “We haven’t been given any guarantees that we will have these bonuses back further down the line.”
