PRESS ASSOCIATION 8.5.09 UK
Job fears as steel plant mothballed
One of the biggest steel plants in the UK is to be mothballed,
threatening the future of up to 2,000 workers.
Workers at the Teesside Cast Products plant in Redcar were told the
grim news ahead of a 90-day consultation on the future of the plant.
Union leaders expressed "outrage" at the news and said the
livelihoods of thousands of workers were now in jeopardy.
Owner Corus said the development had become "unavoidable" because of
the termination of a contract by four international steel slab buyers.
Corus said: "The company has begun discussions with employees and
their representatives about what can be done 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 had agreed to sell a majority stake in the plant to a
consortium led by Italian firm Marcegaglia, but the steel giant said
the consortium had "unilaterally and unreasonably" initiated moves to
terminate the contract, making Redcar "unviable".
Anglo-Dutch firm Corus, which has been owned by Indian conglomerate
Tata since 2007, said it was using all legal means to ensure the
terms of the 10-year contract were enforced and that the four members
of the consortium lived up to their contractual obligations.
The company said it was exploring alternative options that might
secure a viable future for the Teesside Cast Products site at Redcar
(TCP) and its employees.
Corus chief executive Kirby Adams said: "I am extremely disappointed
that the consortium members have seen fit to take this irresponsible
action.
"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."
Posts
