REDCAR and Cleveland Council has expressed its "shock and sadness" at the announcement by Corus to begin consulting on possible redundancies.

The Council's leader Coun George Dunning said: "We've had the threats hanging over the Teesside steel industry for many years, but today is like being hit by a mini earthquake compared to what's happened in the past.

"I was made redundant from the steel industry in 1994, so I'm afraid I have first hand knowledge of the damage and misery it can cause to families.

"All I can say is that this Council will be here to assist any steelworker who faces losing their job.

"We will take a full role in supporting residents who are experiencing the impact of today's announcement and who are concerned about their future by bringing together a task group of officers, experts in employment, support and welfare advice."

Coun Dunning described the mothballing decision for the blast furnace as "a major concern." He said: "In years gone by, there was hope that it could be brought back into stability, but this announcement sends a shiver down my spine."

Coun Dunning also questioned the decision of the consortium - which includes the companies of Marcegaglia SpA, Dongkuk Steel Mills Co Ltd, Duferco Participations Holding Ltd1 and Alvory SA2 - to stop taking steel from Teesside Cast Products.

He said: "Any lay person would think that by refusing to take any more steel from Teesside Cast Products these companies are in breach of their ten-year contract."

The Council's Cabinet Member for Economic Development Coun Mark Hannon bemoaned the 'scourge of unemployment' on the Borough.

He said: "This is a desperate situation and we need the Government to step up to the mark and start supporting our manufacturing industries.

"Obviously, we've heard rumours over the recent past, but, today our worst fears have been realised. It's the scourge of unemployment and we can't tolerate it. We're facing serious social and economic effects."