Member Article

Steel jobs rescued in £291m deal

AROUND 700 jobs on Teesside have been secured following the completion of a £291m deal which will breathe new life into the region’s downtrodden steel industry.

Thai steel maker SSI brought to an end months of speculation yesterday as it finally sealed a deal to buy the Corus Teesside Cast Products (TCP) site in Redcar.

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 venture to run Redcar Wharf, TCP’s bulk terminal.

Business secretary Vince Cable welcomed the news, saying: “The deal is very good news for workers at the Teesside plant and the region.

“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.”

James Ramsbotham, chief executive of the North East Chamber of Commerce, said: “The news of the mothballing of the plant was hugely disappointing, but as a region, we always remained hopeful that we could turn this around.

“This announcement demonstrates the power of working together. The public and private sectors have worked in tight partnership, and have remained absolutely committed to securing the future of the plant.

This was posted in Bdaily's Members' News section by Ruth Mitchell .