Corus closure prompts £60m support package
8 Dec 2009
London – The decision by Corus to halt production at its Redcar steelworks with the loss of 1700 jobs, has prompted the UK Government to fast track a number of planned projects to secure immediate investment to support workers in the Teesside area. The two-part package, it said, will create an estimated 3000 new jobs in the short to medium term and sustain over 10,000 jobs long term.
Phase 1 of the programme will address immediate issues arising from the Corus Redcar mothballing, including providing around £10 million for apprenticeships and support for people to start businesses and up to £20 million investment in the nearby Wilton International site, the other major employer in the vicinity to strengthen and sustain its competitiveness and employment. The enterprise support will be targeted primarily at redundant workers and could create up to 300 jobs.·
Another £30 million will be used to equip Teesside to move from traditional heavy industry towards becoming a “low-carbon manufacturing base”. This includes investment in redevelopment of industrial land and infrastructure, and to establish bio-based materials, to reduce energy use of industry in the area, for initiatives on carbon capture and storage and support for technology transfer and new business practices.
Announcing the scheme, Lord Mandelson said: “Following the announcement that Corus will mothball its Redcar plant we must act to secure long term employment in sustainable manufacturing in the region. Today’s investment from the Government and [regional development agency One North East] will strengthen existing industries and create new opportunities.”
Alan Clarke, One North East chief executive and chairman of the Corus Response Group, added: “This package of support builds upon and accelerates projects which will help underpin the future economy of the Tees Valley. It is very much addressing immediate priorities while also looking to the longer term to put in place the infrastructure needed to support the major changes the process sector and other industries are embracing.
“Some of this investment package will directly support the work of the Corus Response Group which is meeting in Redcar tomorrow to take forward a package of assistance for workers facing redundancy.”
The Government move was welcomed by the Chemical Industries Association, citing in particular a £20m investment in the Wilton International site, which it would strengthen and sustain competitiveness and employment in the chemicals cluster. The CIA also backed the £30-million support for low-carbon advanced manufacturing projects on Teesside, such as those involving bio-based materials, energy efficiency and carbon capture and storage.
