ECONOMIC experts are to be called in to make a case for Teesside steel.

Plans to compile a business plan were made by worried Redcar and Cleveland Borough councillors this week following a statement from debt-laden Corus steelmakers.

Fears have grown among 3,600 steelworkers that Redcar, Lackenby and Hartlepool steelworks could be closed after Corus said that they may have to "concentrate operations on fewer sites."

Since then details have emerged of the company's £1.6bn debt and there have been calls from unions for the immediate resignation of Corus chairman Sir Brian Moffat.

Hopes were raised that the Teesside operation would not be cut after Redcar MP Vera Baird and Stockton South MP Dari Taylor quizzed senior management in the House of Commons last week. The MPs said they had been told that the 'finger is not pointing at Teesside'.

But since then Corus, which is in negotiations with bankers, has issued a statement making clear that no decision will be made in the immediate future.

Now Redcar and Cleveland Council has drawn up special plans to compile a 'serious case for steel'. Its chief executive, Colin Moore, told the executive committee that the authority was already working with the North-East Chamber of Commerce to build a campaign against any closure.

The executive has delegated powers to council leader David Walsh, deputy leader George Dunning and Mr Moore to call in consultants and analysts with a brief to compile a "serious brief for Teesside."

Mr Moore said: "We want to build a case that will have credibility with the City institutions and their boardrooms. We need to reach into the heart of the City of London - that's where the big decisions will be made."

It is thought that transport issues, the ready market for steel in the North-East, the high level of efficiency of the Teesside workforce and the high level of local steel-making expertise will be invoked in any business plan.