Tata Steel's European arm Corus today said it is open to "credible offers" for selling its Teesside Cast Product (TCP) mills at Redcar in the UK.
The renewed offer comes after a group of interested buyers terminated discussions with Corus, which was bought out by the Tata Group, amid reports that the company was unwilling to engage on a constructive basis.
Asked to comment on these reports, Corus officials declined comment.
"Corus is continuing to make every effort to find a long-term solution for TCP... We remain open to any credible offers from third parties interested in providing such a solution," a Corus spokesperson told PTI after a consortium in talks with Corus for acquisition of TCP mills reportedly withdrew from the deal.
At the same time, leading British trade body Community Union said the company (Corus) should conclude a deal with Thai steel-maker Sahaviriya Steel Industries (SSI) to save 1,600 jobs at TCP mills, which was temporarily shut down early this year.
"To date, Corus has followed up every single enquiry and engaged constructively with any bidder that presented an offer which provided a viable future for TCP, including demand for the site's output. We have retained the investment bank Citi to assist in this process and we remain in discussions with a number of parties," the spokesperson said, denying to comment on the consortium's withdrawal.
The facts that the company is spending millions more on partially mothballing the unit rather than permanently closing the plant demonstrates Corus' genuine commitment to this process, the spokesperson said.
The consortium, comprising private equity firms Rutland Partners and Hatch Corporate Finance, as per reports, pointed out that it had formulated a business plan and secured investment and customer support to enable TCP's acquisition, but Corus was unwilling to engage constructively.
However, sources said the talks were terminated following the buyers group refusing to sign a confidentiality agreement with Corus.
While a Corus spokesperson refused to comment on this, attempts to reach the consortium went unanswered.
Meanwhile, sources said Corus is in talks with Thai steel company SSI, though Corus officials refused to comment on the same, saying the company has a process which is managed by Citibank. The company recently appointed Citibank to advise it on the sale of TCP.
Community Union's spokesperson told PTI that it has approached Corus to continue its talks with SSI and "come to an agreement that protects the industrial heritage and loyal workforce of the Teesside plant".
"...SSI is the only serious option for Teesside and Community Union renews its call to Corus to conclude a deal that ensures a future for the Teesside workforce," it said.
The trade union had earlier approached the then Prime Minister Gordon Brown to intervene and save 1,600 jobs at the mills.
TCP mills has been facing difficulties for a year-and-a-half since a four-member consortium led by Italian major Marcegaglia pulled out of a 10-year purchase contract, which led the management to mothball the plant in February.
