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Corus receives proposal for mothballed Teesside plant

Corus, the steel giant with operations around the world, has confirmed receipt of a potential offer for its mothballed Teesside plant which has been at the centre of much controversy over the last few months. It is believed that a consortium has offered to acquire the subsidiary although there are potentially controversial conditions attached to the offer. So what exactly is going on?

A consortium of investors, being advised by Hatch Corporate Finance, is looking at a potential offer although it has requested flexibility on fixed costs such as wages which would be linked to the price of steel. The new investors will also look to suppliers and potential customers to be part of the consortium as a means of keeping costs as low as possible and obtaining the best price for steel produced by the plant.

The Community Union, which represents Corus workers, has refused to give a detailed response to the proposals until further details are made available. Whether or not an offer is made remains to be seen but if the union accept a flexible wage structure, linked to the price of steel, it is likely that other businesses would also look to push through similar deals. A potential offer, and acceptance of a potential offer, is by no means guaranteed and as more information reaches the public domain about the conditions attached, the more concerned many experts are becoming.

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