Corus to offload troubled Teesside steel plant

Citigroup has been drafted in to handle the sale of Corus' Teesside steel plant, a move that would save over 2,000 jobs.

Corus, formerly British Steel, is understood to be currently undertaking early stage talks with Thailand steel group Sahaviriya Steel Industries PCL, while several other third parties are also interested.

Corus, owned by India's Tata Steel Ltd, reportedly said it is open to offers for the Redcar-based plant after a visit from Community Union and SSI representatives.

Rumour has it that a deal might not be reached at all, and that SSI in particular could find it difficult to incorporate the Teesside plant with its own operations.

Corus has been battling to keep the plant open after losing a ten-year contract with a consortium of companies that would have guaranteed the purchase of 80 per cent of its steel slab output. Since then, the group has taken legal action against the consortium for the withdrawal.

Earlier this year, Corus had no choice but to close down parts of the plant, with the subsequent loss of 1,500 jobs.

Presently, the steel plant is one of the largest employers in the region. Tata acquired Corus three years ago in a deal worth £4.3bn.

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