New talks over threatened plant

There are 1,920 employees at the Teesside plant

Steelmaker Corus is talking to new potential buyers for a threatened plant where up to 2,000 staff work.

The future of Teesside Cast Products, in Redcar, has been at risk since an international consortium pulled out of a deal to buy the plant's production.

Two members of the consortium, Dongkuk Steel Mills Co Ltd and Marcegaglia, signed a memorandum of understanding in January about buying the plant.

But the deadline for the memorandum of understanding ran out on Tuesday.

The two had previously waived exclusivity rights, which had prevented Corus from talking to other potential interested parties during the period of the memorandum.

A spokeswoman for Dongkuk and Marcegaglia confirmed the memorandum expired on Tuesday.

Buyers sought

A Corus spokesman confirmed it was now talking to other interested parties but there were no further details.

In May, it was announced the Redcar plant was set to be mothballed, threatening the jobs of nearly 2,000 workers, after the early end to the contact by four international slab buyers.

The agreement was signed in 2004 and committed the consortium to buy just under 78% of the plant's production for 10 years.

A 90-day consultation period is currently being held.

At the beginning of June, it was announced that internal orders from Corus meant the plant could continue operating until August.

A Corus spokesman said it was either trying to find a buyer for the entire plant or someone to replace the consortium in buying the plant's production.

Site multi-union chairman Geoff Waterfield said: "If we look like we are going back to normal times steadily but surely then Teesside becomes a real investment possibility for somebody on the open market."