Consortium bids to buy mothballed Corus plant

A bid has been launched to buy a mothballed steel plant, it was reliable today.

A plan organisation put together by North East office worker Chris Musgrave is looking to buy Coruss Teesside Cast Products (TCP) plant in Redcar.

The consortium includes London-based in isolation equity residence and metallurgy experts Hatch Corporate Finance.

Mr Musgrave, the man at the back of Wynyard Park Limited, approached Middlesbrough Mayor Ray Mallon and Middlesbrough Football Club authority Steve Gibson for recommendation after both called for some-more movement to guarantee the areas 170-year steel-making heritage.

Mr Mallon pronounced the consortiums intention, if the bid was successful, was to re-commence steel-making.

In December, myself and Steve Gibson went open with the concerns that, instead of the concentration being on saving steel-making, all the speak seemed to be on the area perplexing to redeem from the closure of Corus, he said.

We believed that was beforehand as there were avenues that had not been entirely explored.

No-one should be in any disbelief that there is still a prolonged approach to go prior to any steel jobs are savedand it competence still infer unfit so people should not set up their hopes upbut todays headlines is acquire and is a step in the right direction.

I have been really tender by the integrity of Chris Musgrave and Paul Weavers to move this along and the impasse of such a world-renowned association as Hatch is really encouraging.

I have pronounced all along that I will do all I can to await this organisation or any alternative consortium meddlesome in removing a bid together to try to save steel-making on the Tees. That stays the casemy doorway is regularly open.

Mr Mallon added: Its expected that any successful bid will need Government support.

An choosing is appearing and we dont know who the Government will be after that, that is since both vital parties have been entirely briefed.

Downing Street has been suggested of the growth by Middlesbrough Labour MP Sir Stuart Bell.

Workers" representatives, steel industry suppliers and commercial operation have additionally been informed, together with Conservative personality David Cameron.

Mr Musgrave said: Both myself and Paul are assured that steel-making on Teesside can be saved and we approached Ray Mallon since it was transparent he common the integrity to do all we can to grasp this.

This is a opposite industry to those on the Wynyard site but the element of construction tolerable commercial operation is the same.

An suggest for the Corus site, that combines internal hold and general expertise, has been made.

This can work with the await of the unions, Tata and the Government.

Mr Musgrave added: We do not wish to lift fake goal and it contingency be stressed there is still a prolonged approach to go but we hold this plan is applicable and gives a possibility for steelmaking to resume.

Vera Baird, Labour MP for Redcar, said: It is great to see Mr Weavers" organisation feeling assured that they competence fool around a purpose in the destiny of TCP right away that they have had time to get a little report about the plant.

They have worked quickly, that is to be commended.

This is a non-binding suggest so it is a piece of negotiating routine and I await with seductiveness to see an early reply from Corus.

Already �10 million has been disbursed effectively from the Governments �60 million programme for the Tees Valley Industrial Programmeand some-more to come.

This is in further to the existent �130 million investment in commercial operation and await skills in the Tees Valley to run from 2009 to 2012.

The �200 million steel siren stipulate for Corus Tubes at Hartlepool could not have been completed but the Government on condition that collateral taxation stipend service to the balance of �320 million.

Many of the jobs combined will compare the skills of Redcar workers.

The mothballing routine at TCP began on Feb 19. At slightest 1,600 people mount to lose their jobs over the entrance months.

Earlier this week, Corus voiced that it would emanate 100 jobs at the Hartlepool site after it won a �200 million tube deal.