Mayor says ‘credible buyer’ is still interested in Corus (From The Northern Echo)

Mayor says ‘credible buyer’ is still interested in Corus

9:13am Friday 19th March 2010 in

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THE fight to save the mothballed Teesside Cast Products Plant has reached its Indian owners.

The development comes as Middlesbrough Mayor Ray Mallon said he believes a credible buyer for the Corus plant is still interested in taking it over.

Following a critical North East Regional Committee report into Corus’ handling of the proposals to shut down the plant, Redcar MP Vera Baird wrote to Ratan Tata, the head of the corporation.

The report accused Corus of a series of blunders, condemning the company for refusing to to talk to potential buyers.

Welcoming Mr Tata’s reply, Ms Baird said: “He makes clear that he is satisfied that Corus has done all it can to keep the plant working and to find a buyer. I am very clear now of three things.

“The first is that the negotiations for a sale of the plant, with the most promising buyer, have now moved abroad and are ongoing mainly at the site of that business’ headquarters and production plant. That is a good sign of commitment and serious engagement by the parties.

“The second is that Tata is taking a very much closer direct involvement in the talks since the committee report and my letter.

“The third is that, at present, there is no request or suggestion from these talks of a Government subsidy to facilitate the sale. The Government remains in close touch with the parties, making clear its support for a sale.”

Mr Mallon is confident a buyer can still be found.

He said: “I do not want to raise any false hopes but, whereas a lot of people have given up on Corus, I’m one of those who hasn’t.

“I think it’s very important that we explore every possible avenue before saying goodbye to 170 years of steelmaking in this area.

“It’s common knowledge that myself and Middlesbrough Football Club chairman Steve Gibson were approached several weeks ago by people interested in trying to buy the plant. Since then a lot of work has been going on in the background, locally and across the globe.

“We are still a long way from saving the jobs, but a new acquisition project team is close to finalising a bid for the steel plant and land.

“I know others have suggested there are other groups interested in the plant. I welcome that, the more people we have working to save these jobs the more chance we will have of success.”