by Keith Richmond
Unions have condemned the decision by Tata Corus, the Indian-owned British steel giant, to mothball Teesside Cast Products as premature and said it will have devastating consequences not just for Teesside but for the British economy as well.
Community general secretary Michael Leahy said: “Tata Corus are making a premature decision to close TCP despite having orders on the books to the end of the year. There is still time to save TCP as a going concern and Tata Corus have a moral and social obligation to Teesside steelworkers who have moved heaven and earth to rescue the company and save their jobs.”
Unite’s joint general secretary Derek Simpson said: “This is absolutely devastating news for the men and women who work at Teesside and a dark day for British manufacturing.”
The company said it had to mothball the plant as a result of a decision by its consortium partners – Marcegaglia, Dongkuk, Ternium and Duferco – to terminate a 10-year slab deal after just five years. The arrangement accounts for 80 per cent of output at the site. It means the loss of 1,700 jobs at the plant, which employs 2,600 people, and will have a knock-on effect not just in the community, but through the supply chain as well.
On Tuesday, Lord Mandelson said the Government will invest £60 million in the north east for low carbon and advanced manufacturing, with part of the package addressing the mothballing of TCP.
Mr Simpson said: “Government intervention to support jobs and invest in the future of manufacturing is welcome at any time. However, the scale of the job losses on Teesside requires much more support.
“Financial support would be best aimed at saving the works. The Government should do everything possible to keep a steelmaking infrastructure on Teesside and preserve the skills of the workforce for when the demand for steel increases, which it will inevitably do.”
