Corus has hired Citigroup, the American investment bank, to sell the mothballed steel indent on Teesside, raising hopes that some-more than 2,000 jobs can be saved.
The steelmaker, that is owned by Tata of India and includes what was British Steel, is accepted to be in negotiations with SSI, a Thai steel group. However, sources close to the talks cautioned that they were still at an early stage, and that there was no faith that a understanding would be reached.
The adhering point is approaching to be the worry of integrating the plant at Redcar with SSIs alternative operations.
It is thought a little supervision benefit will be sought, probably in the form of grants to assist the Thai firms central investment in Britain. Corus and the prototype companies together with British Steel have done steel on the site for 160 years.
A understanding would be a bonus for Corus, that has come underneath domestic vigour given tools of the Teesside plant were close down in February.
About 1,700 workers were done redundant, with some-more approaching to go this year. The indent is one of the largest private-sector employers in the area. Unions and MPs have indicted Corus management, led by arch senior manager Kirby Adams, of not perplexing tough sufficient to find a new customer or secure business for the mills products.
The Redcar site has been underneath hazard of closure for multiform years and came close to being axed in 2001 when Corus, afterwards a quoted company, suffered a money predicament and a boardroom split.
It was kept open after Corus struck a understanding with a consortium of 4 general steel firms to buy the plants output.
Last year the consortium pulled out of the deal, withdrawal Teesside confronting an capricious future.
Tata, that had in the meantime paid for Corus, pronounced it would have to begin mothballing the plant if a customer could not be found. It is additionally posterior remuneration from the consortium for allegedly violation the contract.
SSI Sahaviriya Steel Industries was set up twenty years ago as Thailands initial builder of hot-rolled curl steel, that is consequential in the creation of consumer goods. It is right away Thailands largest steel producer.
If SSI succeeds in shopping the Teesside plant, it will be the second Asian steelmaker to squeeze former British Steel assets. Tata Steel paid for Corus in 2007, profitable 6.7 billion at the tallness of a bang in steel prices.
The organisation strike tough times when steel prices slumped during the recession, but has given staged something of a recovery.
During the initial 9 months of last year Corus lost about $1 billion (675m), but has been in distinction since. It has cut 5,000 jobs given the begin of last year.
Tata is right away one of the largest industrial investors in Britain. After appropriation Corus it paid for Jaguar Land Rover, the Midlands carmaker, that employs about 14,000 people. That company, too, suffered in the retrogression but is right away enjoying a mini sales boom.
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