Jobs Go As Steelmaker Shuts Teesside Plant

Some 1,700 workers in the North East are set to lose their jobs in January after steel giant Corus confimed it will shut down its Teesside plant.

The plant at Redcar had a 10-year contract to supply steel slabs, and its closure is set to have a major impact on the local economy.

Sky's business correspondent Dharshini David said: "This is a plant that had been losing money for some time and its future had long been under question.

"The figures show fewer job losses than we expected, but it's nevertheless a big blow for Teesside."

Corus chief executive Kirby Adams claimed the company had no option but to "mothball" the Teesside Cast Products factory after an international consortium broke a binding contract.

"This is the last thing we wanted and we feel deeply about what is happening," he said.

"Sadly, it has become unavoidable, through no fault of our people on Teesside."

Union leaders said the news was "devastating" and called on the Government to take immediate action to help save the jobs.

"This is a dark day for British manufacturing. Unite will do everything possible to prevent this closure from going ahead," joint general secretary Derek Simpson said.

The Redcar plant employs around 2,000 workers and is a major employer in the region.

Michael Leahy, of the Community union, said Corus, which is owned by Indian giant Tata, had made a "premature" decision to close the factory as it had orders on its book to the end of the year.

He argued Tata Corus had a "moral and social obligation to Teesside steelworkers who have moved heaven and earth to rescue TCP and save their jobs".

Corus said it would continue to have a substantial presence in the Teesside area, employing more than 2,000 workers in Hartlepool, Skinningrove, the Teesside Beam Mill and Teesside Technology Centre.

Steel processing around the world was under pressure, with an estimated 300 million tonnes of excess capacity, the company said.

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