A CHEMICALS company has announced the closure of its Billingham operation, with the loss of all 80 jobs.

Air Products, which manufactures methylamines and derivatives, announced in April that it hoped to sell the plant as a going concern.

A spokesman said this week that no buyers had come forward and the firm had told workers that the plant would close within four to six months.

Geoff Ingham, the firm's global business manager, said: "Our priority remains to help all our employees affected by this decision to find new opportunities, either inside or outside Air Products."

Meanwhile, workers at the threatened Corus steelworks in Redcar are hopeful of a new owner stepping in to throw them a lifeline.

Two of the world's biggest steel makers are reported to be vying for a controlling stake in the slab steel plant which could secure more than 2,500 jobs.

Swiss firm Duferco has confirmed it is interested in taking over an 80pc stake in the Redcar works as part of a consortium with two other global steel manufacturers, one of which is South Korean firm, Dongkuk.

Duferco's chairman and owner, Bruno Bolfo, said: "We hope to complete outline discussions over the deal by mid-September and make a binding offer soon after."

A second company, Brazilian CSN, is also believed to be interested in a similar deal.

Corus workers have faced an uncertain future since the company's management decided it no longer needed the slab steel products and wanted to sell off the factory as part of a massive restructure.

It warned that if no buyer could be found, the factory would close.

Company spokesman Craig Evans said: "There is a lot of interest in Teesside. We are in discussions with a number of companies. It's all very sensitive at the moment and for that reason we can't name names."

Tony Poynter, chairman of Teesside's multi-union steel committee, said he expected a deal to be struck before the end of the year.

"If there are that many people interested in our Teesside operation it must be well worth buying into. A year ago we were written off, but our performance is as good as any in Europe.

"The markets have improved rapidly and there is a massive demand for steel.

"There are a lot of interested parties but the indication now is that it's getting down to the more serious ones."

He said Corus had not yet decided on a preferred buyer but would consult with the unions when it did.

"Whoever comes must maintain our terms and conditions and, of course, the workers must remain in the British Steel pension scheme, " he added. "That's been our position for the last year and the company is well aware of that position."

Redcar MP Vera Baird said the plant had transformed its position over the past year.

"I'm very glad that there seems to be a bidding war which means, with shrewd management, we'll get the best deal for everybody."