MRW reported that Lord Peter Mandelson has given Corus full government support as consultations begin due to the possible mothballing of its Teesside Cast Products plant.

Lord Mandelson expressed strong concern that the complete termination of the OFT and the legal challenge to this would threaten the closure of the entire plant.

Lord Mandelson Business Secretary said that “It is essential that Corus does everything it can legally and with the government’s assistance, to reinstate the Offtake Framework Agreement. It is unacceptable that such a development should threaten jobs on such a scale, with such a potentially devastating impact on the area.”

He added that “The Government stands ready to so what it can to support the company. We are not prepared to reconcile ourselves to inevitable closure of this plant.”

The reaction comes as it emerges that the four international slab buyers who committed to a 10 year Offtake Framework Agreement with Corus in 2004, have taken steps to terminate the contract. The signatories to the OFA include Marcegaglia spA, Dongkuk Steel Mills, Duferco Participations Holding and Alvory SA and they agreed to buy just under 78% of the plant’s production for 10 years. Corus are now in discussions with the plant’s 1,920 employees about how to stem the impact of mothballing the plant which would lead to a significant amount of redundancies and what future action can be taken. They are also taking legal action to ensure the consortium abide by the contract.

(Sourced from www.mrw.co.uk)