Steel producer Corus has announced the closure of its Teesside Cast Products (TCP) unit, resulting in the loss of 1,700 jobs.
Corus chief executive Kirby Adams estimated redundancy costs will total £80 million. Adams said: "This is the last thing we wanted and we feel deeply about what is happening. Sadly, it has become unavoidable, through no fault of our people on Teesside."
Tata Steel bought Anglo-Dutch Corus in 2006 for $12 billion and the unit on Teesside accounts for about 15% of its European steelmaking capacity. According to a company statement, Tata had already subsidised the plant's continuing operation to the tune of about £130 million. "Operating a 3 million tonnes per year merchant slab plant is not sustainable without a long-term strategic partner," the statement added.
Responding to the announcement, Unite union's joint general secretary Derek Simpson said: "This is a dark day for British manufacturing. Unite will do everything possible to prevent this closure from going ahead. The government must act now to save Teesside as decisively as it acted to save the banks last year. The plant needs urgent financial support to secure a future for the workers and prevent its closure."
Meanwhile, Keith Hazlewood, GMB Union National Secretary, said: "What a terrible contrast, with 1700 workers losing their jobs on Teesside, while multi-millionaire bankers gorge themselves at the expense of the tax payers."
Depending on your circumstances, you may prefer to speak with an employment law solicitor. You can be matched with a solicitor in your area for free via solicitor matching services, which can also help you to understand the best course of action for your situation and whether you are ready to hire a solicitor.