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Corus sale saves hundreds of jobs

Nikhil Kumar
Friday 25 February 2011 01:00 GMT
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Hundreds of jobs have been secured after SSI, Thailand's biggest steel maker, finally sealed a deal to buy the Corus Teesside Cast Products (TCP) site in Redcar. The pact between SSI and Corus's parent, Tata Steel, values the business at $469m (£291m).

The business secretary, Vince Cable, welcomed the news, saying it would help secure 700 jobs.

"The deal is very good news for workers at the Teesside plant and the region," he said, adding that, besides sustaining hundreds of positions, the deal will also lead to the creation of new jobs at the site and in the wider economy. "I welcome the return of steel making to this historic site."

He added: "Coming just over a year after the plant was mothballed, it is a tribute to both companies involved... Both have worked hard to reach a successful outcome on what has been a complex negotiation."

Tata Steel said the assets covered by the sale include the Redcar Blast Furnace, the Redcar and South Bank coke ovens, and TCP's power generation facilities. Also included are the Lackenby steel making and casting facilities.

The deal will also see SSI and Tata, which will remain one of the biggest employers in the area with a workforce of more than 1,800 people, enter into a joint ventureto run Redcar Wharf, TCP's bulk terminal.

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