Corus to start TCP plant closure tomorrow

Tata Steel's European arm Corus today said it will start tomorrow the process of shutting down some of the mills of its Teesside Cast Product (TCP) plant in England, a move that will render 1,600 workers jobless.

"Corus will start to partially mothball its TCP plant on 19 February 2010," the company said in an emailed statement from London.

The steel maker said it has till now suffered a loss of about 150 million pound on account of running the ailing units. There is no alternative other than partially shut operations of TCP mills on account of increasing losses, it said.

However, the company added that it is open to "credible offers" for the plant.

"There has been speculation about potential last-minute bidders for the plant. Corus' position remains unchanged. This is a mothballing, not a permanent closure. TCP will be kept ready for a restart. Corus remains open to credible offers for TCP," it added.

"By keeping the plant open, much of the time solely on internal orders, Corus lost approximately 150 million pound. The company therefore had no choice, in the absence of a strategic partner, but to announce the partial mothballing of TCP in December," it further said.

The development to partially mothball TCP follows last year's decision of a four-member consortium led by Italian major Marcegaglia to break an offtake agreement with Corus.