Corus to close plant with loss of 1,700 jobs

Britain’s largest Steelmaker Corus has announced today it is to close its Teesside Cast Products factory by the end of January, leaving 1,700 people jobless.

The steel giant announced 3,500 job losses (with 2,000 in the UK) back in June and has been hit by a slump in demand. It produces 20 million tonnes of crude steel every year and has annual revenues of around £12 billion.

Corus, which was bought India’s Tata Steel in 2006, is Europe’s second-largest steelmaker and the ninth largest in the world.

It was created over a decade ago from the merger of British Steel and Dutch firm Hoogovens.

Kirby Adams, Corus’ chief executive of Corus, claimed the company had no option but to “mothball” the 150-year-old Redcar plant after an international consortium, led by Italian steel specialists Marcegaglia, broke a binding contract.

“We are acutely aware that this will be devastating news for our employees, our contractors, their families and the local community,” said Mr Adams.

“We extend our sincere gratitude to all of them, as well as to the management team and the trade unions on Teesside, who have all worked night and day to try and avoid this outcome,” he added.

Meanwhile, Derek Simpson, joint general secretary of the Unite union, described it as a “dark day for British manufacturing.”

“Unite will do everything possible to prevent this closure from going ahead. The government must now act to save Teesside as decisively as it acted to save the banks last year,” added Mr Simpson.

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