CORUS may take legal action against the consortium of steel slab buyers which has thrown the future of its giant Redcar plant into turmoil.

A visibly angry chief executive, Kirby Adams, accused the four steel slab buyers of throwing workers to the wolves by pulling out of the contract.

He describeed the consortium's actions as "deplorable" and pledged to explore every avenue.

The decision to scrap the contract with Corus - effectively sealing the plant's fate - was made several weeks ago.

Corus management sought to change the consortium's minds but, Mr Adams said the group's attitude had been "uncaring."

He added: "They are intent on a divorce and that’s it. We have a great deal of empathy with the employees because they have been very hard done by. Of course they will be devastated by this consortium walking away, at their own convenience, halfway through a 10-year contract.’’

Mr Adams said Corus was doing doing everything it could to secure new work for the factory, but he admitted that options were ‘‘limited’’, especially as steel prices had fallen during the recession.

The contract was signed in 2004 and committed the consortium, which also includes firms from Argentina, Switzerland and Korea, to buy 78% of Redcar’s production for 10 years.

Mr Adams said for the first four years of the contract the four consortium members profited ‘‘very highly’’ from the deal, but the market for slab steel had now ‘‘gone into reverse’’.

Production at the plant had been cut to 70% of capacity at the request of the consortium.

‘‘We are exploring legal and business opportunities but it could be a lengthy process, during which time we have no market for slab.’’

Redcar’s order book would run out in two weeks time, Mr Adams said, adding: ‘‘It seems likely there will be a long-term mothballing of the site. We are trying to mitigate the effects, but the impact is likely to be very tough.’’

Corus is seeking to move steel production of slabs to Teesside on a short term basis, but he pointed out that the firm’s plants in Port Talbot and Scunthorpe were already running at 50 per cent capacity.

‘‘ The Redcar site was built in the early 1970s and operates 24 hours a day, seven days a week. Mothballing the site would not be easy because it could not just be turned on and off, said Mr Adams.‘‘

Tom Brennan of the GMB union said: ‘‘This has come as a great shock. We are seeking urgent meetings with the Government and the company to see what can be done. We cannot afford to lose manufacturing plants like this.’’ Corus announced earlier this year it was cutting 3,500 jobs from its UK workforce.