views

Corus is close to shedding Redcar steel slab plant

CITIGROUP has been appointed by steel giant Corus to sell its mothballed Teesside steel plant with hopes that a deal could save thousands of jobs.

Corus, formerly British Steel and now owned by India’s Tata Group, is looking to shed the Teesside plant in Redcar and save over 2,000 jobs.

It is understood that a number of buyers are already interested in the plant, including Thailand’s Sahaviriya Steel Industries (SSI).

If a deal is struck, the move will come as a relief to Corus, which has been struggling to keep the Redcar cast-steel products plant open after losing a 10-year contract with a consortium of businesses that would have seen 80 per cent of the plant’s steel slab output bought.

In February, the group was forced to shut down portions of the plant and as a result 1,500 workers were made redundant.

Corus said it has already taken legal action against the consortium for withdrawing from the legally binding contract.

The Teesside plant is currently one of the largest employers in the region, with over 2,500 workers.

Meanwhile, SSI is one Thailand’s largest steel producers and was the first maker of hot-rolled coiled steel in the region.

Corus would not comment on whether or not it has already been approached by potential suitors.

It is understood that discussions with buyers are in the early stages.

Tata bought Corus three years ago for £4.3bn.

Related articles