Friday, June 05, 2009

UK steel plant to be ‘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 news ahead of a 90-day consultation period on the future of the plant. Owner Corus said the development had become unavoidable because of the termination of a contract by four international buyers of steel slab.
A spokesman said: “The company has begun discussions with employees and their representatives about what can be done to mitigate the impact of ‘mothballing’ the plant.”
Corus had agreed to sell a majority stake in the plant to a consortium led by Italian firm Marcegaglia, but the steel giant said that the consortium had unilaterally and unreasonably initiated moves to terminate the contract, making Redcar unviable. Corus, which has been owned by Indian conglomerate Tata since 2007, said it was using all legal means to ensure that the terms of the 10-year contract were enforced and that the four members of the consortium lived up to their contractual obligations.

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