MANAGEMENT from Corus are to fly to the Far East this week to re-open negotiations over the deal that could save the future of its closurethreatened Teesside plant and the jobs of its 3,000 workers.
Kirby Adams, chief executive of Corus, is to travel to Korea to meet with Dongkuk Steel, a key member in the consortium which has withdrawn its deal with Teesside Cast Products (TCP) to buy 78 per cent of the plant’s output.
Dongkuk, alongside fellow consortium member Marcegaglia, also signed a memorandum of understanding in January to buy a majority stake in TCP. Until the future of that deal is clarified, Corus cannot negotiate with other potential buyers.
Redcar MP Vera Baird recently met with the head of Italian-based Marcegaglia to help broker a way forward, and now Mr Adams will negotiate directly with Dongkuk to try and salvage the deal and safeguard the TCP plant from potentially being mothballed.
The development came after Mr Adams met a Conservative Party delegation, led by Shadow Business Secretary Ken Clarke, in London’s Millbank on Monday night.
Paul Bristow, the Conservative Parliamentary candidate for Middlesbrough South and East Cleveland who arranged the meeting, said the closure of the Teesside plant is “unthinkable”
and called on UK companies to buy British instead of importing.
Mr Bristow, who attended the meeting alongside Mr Clarke and Greg Clark, Shadow Energy Secretary and Minister for Teesside, said: “We all know that going down the route of trying to take the consortium through the courts isn’t going to be effective. We need to take action now to stop the plant being mothballed.
“Kirby Adams told us he is going to Korea this week in relation to these efforts, and pledged that Corus will do everything in its power to ensure the consortium honours its agreement. It is a very acute challenge, but everyone is keen to do all they can to help ensure steelmaking has a long-term future on Teesside.”
Mr Bristow also called on British companies to source their steel from the UK, instead of looking for imports as a means of helping the economic recovery.
“We need to see more and more companies buying British. During the boom period, we have seen a large reliance on foreign imports, but now we have the downturn, industries like steelmaking really need the support of companies to help ensure their futures,” he said.
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