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Can the government be blamed for the Corus Teeside plant closure?

Yesterday's confirmation that a Corus steelworks in Teeside will be mothballed with the loss of 1,600 jobs has prompted an angry response towards the UK government. However, this is a plant which has been very profitable in the past for the Corus group and many believe the plant could still be profitable in the future. So what is going on?

Union representatives believe that the company has simply decided to close the plant and move production overseas, where operating costs can be significantly lower, with a sale of the operation highly unlikely. However, the UK government is currently in talks with the Corus management about a potential sale of the operation amid hopes that at least some of the 1,600 jobs at risk could be saved.

When you consider that the Teeside operation has been active for over 150 years this is a massive blow for the area. The UK government is also well aware that up to 8,000 local jobs could also be at risk as a consequence of the plant closure, which would explain why talks are so intense between the authorities and the Corus management. Very few people believe that a deal can be reached and the mothballing, which starts today, could take up to 6 months to complete.

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