PTI reported that TATA Group said that the British government has not yet contacted it on the possible options to avoid closure of Corus steel plants in Teeside that could result in 1700 jobs losses.

Dr JJ Irani director of TATA Sons told PTI “We haven't heard anything from the British Government so far. There is some political activity in England to keep it going. As far as I know we have not been contacted by the British Government.”

He said “Everybody hopes that it will not be shut down but it is matter of market dynamics. We cannot continue losing hundreds of millions of pounds to keep the plants going.”

Dr Irani said that the collapse of the Teeside plant is because the four firms, which bought 80% of the products, walked away cutting a 10 year contract short. He told “In 2006-07, prices were at peak so as soon as the steel prices fell, these off takers found difficulties in selling our semis, so these people walked away from the contract although it was for a 10 year period. We are of course fighting a legal battle with them but the outcome will take some time.”

Dr Irani said that “It will be re started at a future date. The plant is not going to be dismantled or sold or anything like that, it will be mothballed.”

Fearing 1,700 people would be jobless, British prime minister Mr Gordon Brown on the New Year even promised to talk to TATA Group Chairman Mr Ratan Tata as a last ditch effort to the closure.

(Sourced from PTI)