Bid to save mothballed Corus site is welcomed THE team behind a bid to buy the mothballed Corus steelworks could meet bosses next week, it has emerged.

The consortium, headed by North-East businessman Chris Musgrave, hopes to re-commence steelmaking at the Corus site, in Redcar, east Cleveland.

Last night, union leaders welcomed the news that steelmaking on Teesside had not been forgotten.

The team, which also includes local entrepreneur Paul Weavers and internally-renowned metallurgy experts Hatch Corporate Finance, submitted an offer for the Teesside Cast Products (TCP) plant to Corus on Wednesday evening.

Middlesbrough Mayor Ray Mallon has confirmed the consortium approached him six weeks ago with the hope of maintaining the 170-year history of steelmaking on Teesside.

About 1,700 people lost their jobs last month after bosses closed the plant.

The proposal centres on suppliers and end-product buyers being part of the ownership of the plant and flexibility on fixed costs, such as wages.

Mr Musgrave said: “An offer for the Corus site, which combines local knowledge and international expertise, has been made. This can work with the support of the unions, Tata and the Government.

“I believe this model gives the plant the best chance of survival in the future and by bringing other industries to other parts of the site we can further regenerate the area.”

Mr Mallon said: “No one should be in any doubt that there is still a long way to go before any steel jobs are saved, and it may still prove impossible so people should not build their hopes up, but this news is welcome and is a step in the right direction.

“I have said all along that I will do all I can to assist this team or any other consortium interested in getting a bid together to try and save steelmaking on the Tees.”

Geoff Waterfield, TCP multiunion chairman, said: “It is great news. It proves after all this time people are still interested in Teesside. I have not seen the details of the proposal, but they seem very determined and they understand what it means to the area.”

A spokesman for Corus said: “Since the TCP offtake consortium reneged on its ten-year binding contract with Corus in April last year, Corus has continuously sought a long-term future for its Teesside Cast Products business.

This is something the company continues to do.

“Any meaningful approaches are welcome from potential strategic partners that have the necessary financial capability as well as a long-term requirement for TCP’s three million tonnes per year of slab output and we will enter into good faith discussions with any such investor.”

Vera Baird, MP for Redcar, said: “It is good to see Mr Weavers’ group feeling confident that they might play a role in the future of TCP now that they have had time to get some information about the plant.”

Sir Stuart Bell, Labour MP for Middlesbrough, said: “I welcome the initiative of a local group of entrepreneurs to make a nonbinding offer to Corus to buy the recently mothballed Teesside Cast Products plant from Corus.”

Businessman with top track record

SINCE the Corus plant was mothballed last month, rumours of interested bidders have been rife.

However, the consortium led by North-East businessman Chris Musgrave and entrepreneur Paul Weavers is the first to reveal its identity and submit a bid.

The pair approached Middlesbrough Mayor Ray Mallon and Middlesbrough Football Club chairman Steve Gibson in an effort to resurrect the steelmaking industry on Teesside.

Since the initial meeting, the businessmen have gained the support of internationallyrenowned metallurgy experts Hatch Corporate Finance on board. This knowledge could prove vital to the bid.

Hatch specialises in metals and mining.

Steel industry expert Rod Beddow, of Hatch, has drawn up a model for sustainable steel production at the site.

He has been helped by a team, which includes former chief executive of Corus Tony Pedder.

Mr Pedder gained more than 30 years experience working for British Steel and Corus before he retired in 2003.

Hartlepool-born Mr Musgrave, is chief executive of JC Musgrave Ltd and the man behind the Wynyard Park Business Development.

He bought the land when Samsung closed its plant there with the loss of 1,000 jobs.

The site now boasts 58 different companies, has attracted £250m of private investment and employs more than 1,200 people.

In addition, last week the Government gave the go-ahead for a £464m hospital to be built on the site.

Mr Weavers was born in Guisborough and attended Eston Grammar School. He has worked with major finance houses in the past on projects including the re-birth of the coal-fired power station in Uskmouth, South Wales, into a sustainable energy provider.

Other interested parties are said to be continuing to look at the options, but it is not known whether this bid will encourage them to go public.