Government unveils £60m package of investment for Teesside to soften Corus blow (From The Northern Echo)

Government unveils £60m package of investment for Teesside to soften Corus blow

2:59pm Tuesday 8th December 2009 in North-East Business News

THE Government today announced a £60m package for Teesside after it was hit by plans to axe steelworkers' jobs.

Ministers said the money will support the North-East's drive to attract investment for low carbon and advanced manufacturing.

The region suffered a huge blow last week when steel giant Corus announced plans to mothball part of its giant plant at Redcar in the New Year, with the loss of 1,700 jobs.

The Government said it had decided to prioritise a number of projects to secure immediate investment to support workers in the area, with the aim of creating 3,000 new jobs.

Business Secretary Lord Mandelson said £10m will be provided for apprenticeships and support for people starting new businesses as a direct result of the Corus announcement, while up to £20m will be invested in the nearby Wilton International site, the other major employer in the area.

Lord Mandelson said after meeting business leaders from the North-East: "Following the announcement that Corus will mothball its Redcar plant we must act to secure long term employment in sustainable manufacturing in the region.

"Today's investment from the Government and the regional development agency will strengthen existing industries and create new opportunities. Teesside has the skills, the workforce and the infrastructure to compete in future advanced and low carbon manufacturing.

"We're acting to ensure they have the best support to succeed."

Alan Clarke, One North East chief executive and chairman of the Corus Response Group, said: "This package of support builds upon and accelerates projects which will help underpin the future economy of the Tees Valley.

"It is very much addressing immediate priorities while also looking to the longer term to put in place the infrastructure needed to support the major changes the process sector and other industries are embracing."

Some of this investment package will directly support the work of the Corus Response Group which is meeting in Redcar tomorrow to take forward a package of assistance for workers facing redundancy.