Corus is to mothball its Teesside Cast Products (TCP) plant in northeast England, threatening 2000 jobs
Corus say that they have been forced to mothball the plant, as four international slab buyers have walked away from a contract which should have lasted until 2014
A consortium of including Marcegaglia SpA, Dongkuk Steel Mills Co Ltd, Duferco Participations Holding Ltd1 and Alvory SA2 had signed up to buy just under 78% of the plant’s production at cash cost for ten years. the consortium terminated the contract last month, making the TCP operation unviable, according to Corus
The company has today begun discussions with employees and their representatives about what can be one to mitigate the impact of mothballing the plant on the 1,920 employees and what future action may be needed. Any decision to mothball is likely to lead to a very significant number of redundancies.
Corus is also using all legal means to ensure that the terms of the 10-year contract are fully enforced and that the four consortium members live up to their contractual obligations.
“I am extremely disappointed that the consortium members have seen fit to take this irresponsible action,” said Corus chief executive officer Kirby Adams. “Their unilateral termination of a legally binding 10-year contract could bring to an end a fine heritage of steelmaking at Teesside. We regret the distress their action will cause TCP’s dedicated employees, who have worked steadfastly in the interests of the consortium.”