10,000 jobs may face Corus closure heat
Nearly 10,000 jobs are under threat as Tata Steel’s European arm Corus is mulling closing of one of its mills in England after a group of buyers terminated a contract to buy the unit’s 80 per cent produce for 10 years.business Updated: May 13, 2009 01:55 IST
Nearly 10,000 jobs are under threat as Tata Steel’s European arm Corus is mulling closing of one of its mills in England after a group of buyers terminated a contract to buy the unit’s 80 per cent produce for 10 years.
“Not only did the consortium’s decision spell the end for an estimated 3,000 steel workers in the area, but a further 7,000 jobs in the supply train are also threatened,” the Daily Mail newspaper reported in its online edition.
Corus spokesperson did not respond to an email query sent by PTI at the time of releasing the story.
However, a senior company official said that direct and indirect job losses are imminent with closure of industrial operations, though he did not confirm to such a figure. “We have 1,920 employees on the company’s roll and 1,000 contractual workers. There jobs are under threat. There will be indirect job losses too but we cannot confirm the figure,” he said.
As the consortium of buyers, comprising Italy-based Marcegaglia, Korean firm Dongkuk Steel and others like Duferco Participations and Alvory SA, has backtracked from the offtake deal, Corus is looking at legal options to avert the closure of its Teesside Cast Product unit in Northeastern England.
“Corus is using all legal means to ensure that the terms of the 10-year agreement are fully enforced and that the four consortium members live up to their contractual obligations,” the company had said.