STEELMAKER Corus will continue to produce steel at its threatened Redcar plant until at least August after bosses secured new orders.

The news means further breathing space for those hoping to save the plant from closure.

A 90 day consultation with workers and their union representatives at the plant began in May over its possible mothballing after a consortium of four foreign steel slab buyers pulled out halfway through a ten-year agreement to take nearly 78 per cent of the plant's output.

A total of 3,000 workers are employed by the plant, and thousands more work in jobs that are directly or indirectly connected to it.

Yesterday the Corus Response Group, which is aiming to persuade the international consortium to return to the negotiating table, said new internal orders from Corus had enabled the plant to keep operating until August.

Jon Bolton, Teesside Cast Products managing director, said: “These new orders from Corus will ensure we continue to manufacture steel at TCP for the duration of the 90-day consultation period.

"We have also identified sales opportunities with slab buyers around the world which we are urgently pursuing.

"The new orders are essential to enable us to keep operating.

"They also give us time during the consultation period to look at opportunities which could secure the longer-term future of the plant.”