‘Why I believe there is a future for steel’

We publish it today as a tribute to a community politician who cared deeply for, and understood, his patch.

A CLOUD of despondency has descended over the coastal end of the Tees Valley with the mothballing of Corus’ iron and steelmaking operations and the potential loss of 1,600 jobs directly.

It has deeply saddened me.

But despite the gloom, I genuinely believe that steel has a vibrant, valuable future on Teesside – a community which is quite literally built on the stuff.

I am still optimistic that a new partner can be found for the mothballed Teesside Cast Products (TCP). Along with my parliamentary colleagues, Redcar and Cleveland Borough Council and the steel trade unions, I have been trying to identify a partner which has enough financial muscle to take on a business with a turnover of £2bn-ayear and which can find markets for three million tonnes per annum of steel slab.

My optimism is based on the fact that every week shows how strong the worldwide economic recovery is becoming and how the infrastructure boom – a boom that has to be fed with steel – is continuing in China and India.

Another fact – that Corus is spending millions on mothballing rather than permanently closing the plant – demonstrates its genuine commitment, something that has been underlined to me in my many long discussions with Corus and parent firm Tata.

But even as things stand today beneath that cloud of despondency, we should remember that Corus is still one of Teesside’s major employers. It has 2,500 staff at sites across the conurbation.

Despite the gloom, steel processing still plays an extremely important part in our local economy.

As well as those retained at TCP, Corus employs large numbers at the Teesside beam mill, Skinningrove special profiles, Hartlepool tube mills and the world-renowned Teesside Technology Centre – where I used to work as a scientist.

When we look at these assets in detail, we can see the potential for growth.

Corus Construction and Industrial at the Lackenby Beam Mill is a worldclass supplier of structural sections for construction use. It has workshops beside it which are capable of processing those sections to a very high degree of accuracy and tailored to customer requirements.

With worldwide recovery under way, the Beam Mill will be a key Teesside asset for future growth and development.

These arguments also apply to the Skinningrove Works in East Cleveland.

Corus’ Special Profiles plant there is one of the world’s leading manufacturers of custom-designed, hotrolled special shaped steel profiles. It has a long history of supplying earthmoving equipment, materials handling, ship building and mining sections across a wide customer base.

It has great potential for growth as a new generation of earth moving and constructional equipment will be needed for that building boom.

In addition, Skinningrove has a newly-proven ability to win orders for the wind turbine industry. As the first of the new generation of wind turbine manufacturers will be based in the North-East, and that Teesside is the nearest shipping centre for the new Dogger Wind Farm North Sea Zone, there is, in my view, a strong logic in seeing that Teesside becomes the centre of wind farm technology in the same way that Aberdeen was able to capitalise on North Sea oil and gas.

But perhaps one of the greatest of Corus’ assets is that it is still the biggest single land holding on Teesside.

Much of that land and the associated infrastructure (such as the Redcar Ore Terminal and the South Bank Wharf) has valuable potential, given the deep water access and the activities of Teesport as a neighbour Up to now, the Ore Terminal has handled eight million tonnes a year of iron ore and coal imports for Corus. It can cope with some of the biggest bulk handling ships in the world. Given this capability, I strongly believe that thought should be given to how it can be developed to partner the ambitious plans of PD Ports, which is looking to develop the Tees as the UK’s Northern Gateway for cargo and container imports and exports.

Getting Corus’ other landholdings into active use is also vital for Teesside.

The fact that its land is already zoned for heavy industrial use means that the planning process, which can bedevil development, is much easier.

One particular use that should be encouraged is power generation.

MGT Power has already been given consent for a wood chip burning plant on land adjacent to Teesport, and another operator, Progressive Energy, is extremely hopeful of being chosen to pilot one of the four Carbon Capture and Storage plants planned by the Government.

To me, Corus’ landholding, with its existing land use status, and the nearness and potential of the Redcar terminal, makes a natural fit.

The ball is now firmly in Corus’ court. An action programme for its remaining activities on Teesside and the firming-up of proposals for partnership with the port and other industrial concerns should be high on the agenda of the Corus board.

I know, from discussion with the leader of Redcar and Cleveland council, that there would be enthusiastic support from both the council and the wider community for such a programme, and I also know that such an approach fits totally with the ideas of regional agencies such as One North East.

With continuing backing from government, we could see new growth that would guarantee new jobs and development for the coming generation.

After the clouds of despondency clear, I believe there will be a new dawn for steel on Teesside.