2,000 jobs at risk as Corus considers Teesside plant closure

Steel producer Corus may cut 2,000 jobs at its Teesside Cast Products plant after four international slab buyers, Marcegaglia, Dongkuk Steel Mills, Duferco Participations Holding and Alvory, have terminated a 10-year supply contract.

As their main customers, the consortium have failed to fulfil their part of the contract which has been signed for ten years and was set to run until 2014.

As part of the 2004 agreement the group was to buy 78 percent of the steel produced by the plant which secured its future.

Now that the consortium has not lived up to its steel purchasing of 3.5 million tonnes of steel a year, Corus have stated that substantial job losses will ensue. However legal proceedings have begun in a bid to bring the consortium to honour the agreement.

If it is unsuccessful Corus, announced that they would close the Teesside facility as chief executive Kirby Adams stated that the company is disappointed that they have had to take such action and that the unilateral termination of a legally binding contract is irresponsible.

Corus has started discussions with the employees at the plant but the company has stated that it will pursue all avenues in order to secure the plant and the jobs of its employees.

Business Secretary Peter Mandelson said that Corus must do all it can legally and the government will offer as much assistance in order to reinstate the agreement.

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