Consortium bids to buy mothballed Corus plant

A bid has been launched to buy a mothballed steel plant, it was confirmed today.

A project team put together by North East businessman Chris Musgrave is seeking to buy Corus's Teesside Cast Products (TCP) plant in Redcar.

The consortium includes London-based private equity house and metallurgy experts Hatch Corporate Finance.

Mr Musgrave, the man behind Wynyard Park Limited, approached Middlesbrough Mayor Ray Mallon and Middlesbrough Football Club chairman Steve Gibson for advice after both called for more action to safeguard the area's 170-year steel-making heritage.

Mr Mallon said the consortium's intention, if the bid was successful, was to re-commence steel-making.

"In December, myself and Steve Gibson went public with our concerns that, instead of the focus being on saving steel-making, all the talk seemed to be on the area trying to recover from the closure of Corus," he said.

"We believed that was premature as there were avenues which had not been fully explored.

"No-one should be in any doubt that there is still a long way to go before any steel jobs are saved - and it may still prove impossible so people should not build their hopes up - but today's news is welcome and is a step in the right direction.

"I have been very impressed by the determination of Chris Musgrave and Paul Weavers to move this along and the involvement of such a world-renowned company as Hatch is very encouraging.

"I have said all along that I will do all I can to assist this team or any other consortium interested in getting a bid together to try to save steel-making on the Tees. That remains the case - my door is always open."

Mr Mallon added: "It's likely that any successful bid will require Government support.

"An election is looming and we don't know who the Government will be after that, which is why both major parties have been fully briefed."

Downing Street has been advised of the development by Middlesbrough Labour MP Sir Stuart Bell.

Workers' representatives, steel industry suppliers and customers have also been informed, together with Conservative leader David Cameron.

Mr Musgrave said: "Both myself and Paul are convinced that steel-making on Teesside can be saved and we approached Ray Mallon because it was clear he shared our determination to do all we can to achieve this.

"This is a different industry to those on the Wynyard site but the principle of building sustainable business is the same.

"An offer for the Corus site, which combines local knowledge and international expertise, has been made.

"This can work with the support of the unions, Tata and the Government."

Mr Musgrave added: "We do not want to raise false hope and it must be stressed there is still a long way to go but we believe this plan is workable and gives a chance for steelmaking to resume."

Vera Baird, Labour MP for Redcar, said: "It is good to see Mr Weavers' group feeling confident that they might play a role in the future of TCP now that they have had time to get some information about the plant.

"They have worked quickly, which is to be commended.

"This is a non-binding offer so it is a part of negotiating process and I await with interest to see an early response from Corus.

"Already £10 million has been disbursed effectively from the Government's £60 million programme for the Tees Valley Industrial Programme - and more to come.

"This is in addition to the existing £130 million investment in business and support skills in the Tees Valley to run from 2009 to 2012.

"The £200 million steel pipe contract for Corus Tubes at Hartlepool could not have been achieved without the Government providing capital tax allowance relief to the tune of £320 million.

"Many of the jobs created will match the skills of Redcar workers."

The mothballing process at TCP began on February 19. At least 1,600 people stand to lose their jobs over the coming months.

Earlier this week, Corus announced that it would create 100 jobs at its Hartlepool site after it won a £200 million pipeline deal.

Suggested Topics
Life and Style
“What is it like being a girl?” was the question on the lips of one inquisitive Reddit user this week
peopleDave Legeno, the actor who played werewolf Fenrir Greyback in the Harry Potter films, has died
Arts and Entertainment
Armando Iannucci, the creator of 'The Thick of It' says he has
tvArmando Iannucci to concentrate on US show Veep
Life and Style
Luis Suarez looks towards the crowd during the 2-1 victory over England
Life and Style
Swimsuit, £245, by Agent Provocateur

Diving in at the deep end is no excuse for shirking the style stakes

German supporters (left) and Argentina fans
world cup 2014Final gives England fans a choice between to old enemies
Arts and Entertainment
A still from the worldwide Dawn of the Planet of the Apes trailer debut
peopleMario Balotelli poses with 'shotgun' in controversial Instagram pic
A mugshot of Ian Watkins released by South Wales Police following his guilty pleas
peopleBandmates open up about abuse
Basketball superstar LeBron James gets into his stride for the Cleveland Cavaliers
sportNBA superstar announces decision to return to Cleveland Cavaliers
Javier Mascherano of Argentina tackles Arjen Robben of the Netherlands as he attempts a shot
world cup 2014
Arts and Entertainment
The successful ITV drama Broadchurch starring David Tenant and Olivia Coleman came to an end tonight
ebookA unique anthology of reporting and analysis of a crucial period of history
Four ski officials in Slovenia have been suspended following allegations of results rigging
sportFour Slovenian officials suspended after allegations they helped violinist get slalom place
14 March 2011: George Clooney testifies before the Senate Foreign Relations Committee during a hearing titled 'Sudan and South Sudan: Independence and Insecurity.' Clooney is co-founder of the Satellite Sentinel Project which uses private satellites to collect evidence of crimes against civilian populations in Sudan
Arts and Entertainment
Balaban is indirectly responsible for the existence of Downton Abbey, having first discovered Julian Fellowes' talents as a screenwriter
tvCast members told to lose weight after snacking on set
Life and Style
More than half of young adults have engaged in 'unwanted but consensual sexting with a committed partner,' according to research
Life and Style
A binge is classed as four or more alcoholic drinks for women and five or more for men, consumed over a roughly two-hour period
Have you tried new the Independent Digital Edition apps?
Independent Dating

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business


£50000 - £70000 per annum: Harrington Starr: Business Analyst Consultant (Fina...

Programme Support, Coms, Bristol, £300-350p/d

£300 - £350 per day + competitive: Orgtel: My client, a leading bank, is curre...

(Junior) IT Systems Administrator / Infrastructure Analyst

£28000 - £32000 per annum + pension, 25 days holiday: Ashdown Group: A highly ...

Finance Officer

Negotiable: Randstad Education Birmingham: Randstad Education are seeking a Fi...

Day In a Page

A History of the First World War in 100 Moments: Peace without magnanimity - the summit in a railway siding that ended the fighting

A History of the First World War in 100 Moments

Peace without magnanimity - the summit in a railway siding that ended the fighting
Scottish independence: How the Commonwealth Games could swing the vote

Scottish independence: How the Commonwealth Games could swing the vote

In the final part of our series, Chris Green arrives in Glasgow - a host city struggling to keep the politics out of its celebration of sport
Out in the cold: A writer spends a night on the streets and hears the stories of the homeless

A writer spends a night on the streets

Rough sleepers - the homeless, the destitute and the drunk - exist in every city. Will Nicoll meets those whose luck has run out
Striking new stations, high-speed links and (whisper it) better services - the UK's railways are entering a new golden age

UK's railways are entering a new golden age

New stations are opening across the country and our railways appear to be entering an era not seen in Britain since the early 1950s
Conchita Wurst becomes a 'bride' on the Paris catwalk - and proves there is life after Eurovision

Conchita becomes a 'bride' on Paris catwalk

Alexander Fury salutes the Eurovision Song Contest winner's latest triumph
Pétanque World Championship in Marseilles hit by

Pétanque 'world cup' hit by death threats

This year's most acrimonious sporting event took place in France, not Brazil. How did pétanque get so passionate?
Whelks are healthy, versatile and sustainable - so why did we stop eating them in the UK?

Why did we stop eating whelks?

Whelks were the Victorian equivalent of the donor kebab and our stocks are abundant. So why do we now export them all to the Far East?
10 best women's sunglasses

In the shade: 10 best women's sunglasses

From luxury bespoke eyewear to fun festival sunnies, we round up the shades to be seen in this summer
Germany vs Argentina World Cup 2014: Lionel Messi? Javier Mascherano is key for Argentina...

World Cup final: Messi? Mascherano is key for Argentina...

No 10 is always centre of attention but Barça team-mate is just as crucial to finalists’ hopes
Siobhan-Marie O’Connor: Swimmer knows she needs Glasgow joy on road to Rio

Siobhan-Marie O’Connor: Swimmer needs Glasgow joy on road to Rio

18-year-old says this month’s Commonwealth Games are a key staging post in her career before time slips away
The true Gaza back-story that the Israelis aren’t telling this week

The true Gaza back-story that the Israelis aren’t telling this week

A future Palestine state will have no borders and be an enclave within Israel, surrounded on all sides by Israeli-held territory, says Robert Fisk
A History of the First World War in 100 Moments: The German people demand an end to the fighting

A History of the First World War in 100 Moments

The German people demand an end to the fighting
New play by Oscar Wilde's grandson reveals what the Irish wit said at his trials

New play reveals what Oscar Wilde said at trials

For a century, what Wilde actually said at his trials was a mystery. But the recent discovery of shorthand notes changed that. Now his grandson Merlin Holland has turned them into a play
Can scientists save the world's sea life from

Can scientists save our sea life?

By the end of the century, the only living things left in our oceans could be plankton and jellyfish. Alex Renton meets the scientists who are trying to turn the tide
Richard III, Trafalgar Studios, review: Martin Freeman gives highly intelligent performance

Richard III review

Martin Freeman’s psychotic monarch is big on mockery but wanting in malice