Thai Group To Buy Mothballed Corus Plant

[English Noodles]

Unions have welcomed the news that a steel plant mothballed earlier this year with the loss of 1,000 jobs is to be sold to a Thai company.


Unions say move will generate 'wealth and opportunity' in the region


SSI, the biggest steel producer in Thailand, said it had signed a memorandum of understanding with Corus to buy the Teesside Cast Products facility for £321m.
Unite national officer Terry Pye said: "Last year this site was pronounced dead but thanks to the intervention and determination of the workforce and their unions to find a buyer, this steel plant has been brought back to life.
"The deal secures jobs for the future and generates wealth and opportunity for the local community. This is fantastic news."
The site was partially closed when an international consortium walked away from a long-term contract to buy its products.
More than 1,000 workers lost their jobs and there were fears that the plant would shut for good, putting thousands more out of work across the region.


Corus says deal is expected to create a 'significant' number of new jobs

Corus said the it hoped the deal would see steel production resume on Teesside in the first half of next year.
Chief executive Kirby Adams said: "We are very pleased to announce this significant progress in our long-held objective to sell the TCP assets to a strategic industry investor.
"This is the first of several steps required to reach a definitive sale agreement in the coming months which, with the anticipated co-operation of Government, employee representatives and the North East community, should result in the restart of steel-making on Teesside in the first half of 2011."
SSI said it was finalising the details and arranging financing for the proposed acquisition.
The group said the deal would allow it to become "a fully-integrated steel producer with both melting and rolling facilities".
SSI president, Win Viriyaprapaikit, said: "We have great respect for the tradition of steel-making on Teesside and for the highly-skilled Teesside workforce, having previously purchased slab from Teesside Cast Products."


Unions Welcome News Thai Group SSI Is To Buy Mothballed Corus Steel Plant On Teeside | Business | Sky News

[Gerbil]

^ hmmm..... dont know why the unions would be happy about it, I suspect they're not going to have much involvement if it reopens.

[hazz]

Does this mean we can expect lots of yellow shirted right wing reactionary nutters protesting to bring the government down and new elections because an important national asset has been sold to foreigners.

Sorry, just noticed its a thai company buying a british firm, should be ok then

[bart]

hmmm..... dont know why the unions would be happy about it, I suspect they're not going to have much involvement if it reopens.[/quote]


thats a BIG if.

[Marmite the Dog]

At least the Geordies will get a wage that they deserve at long last.

180 Baht a day.

[English Noodles]

At least the Geordies will get a wage that they deserve at long last. 180 Baht a day.

You mean Smogies. Corus is in Teesside not Tyneside.

[Marmite the Dog]

At least the Geordies will get a wage that they deserve at long last. 180 Baht a day.

You mean Smogies. Corus is in Teesside not Tyneside.

OK. Maybe they deserve 200B then.

[Bettyboo]

hmmm..... dont know why the unions would be happy about it

Naivity...

[The Bold Rodney]

SSI, the biggest steel producer in Thailand, said it had signed a memorandum of understanding with Corus to buy the Teesside Cast Products facility for £321m.

Errrrrrrrrr...its only a "memorandum of understanding" and knowing just how the Thai's translate thing's and their understand of matters, I wouldn't get too excited yet!

[Nostradamus]

I'm just surprised the Thais understood anything up in that neck of the woods.

[The Bold Rodney]

I'm just surprised the Thais understood anything up in that neck of the woods.

Don't underestimate a Thai's understanding of matters, the sting in the tail so to speak is their interpretation of that understanding.

Which can be easily summed up in a few words..."screw the f*cking farangs"!

[Mid]

Thai visit raises hopes for Corus
Kim Carmichael
Nov 28 2010



A NORTH MP last night spoke of his fresh hope for steelworks Corus after Thai chiefs made a secret visit to Teesside.

Redcar MP Ian Swales was speaking after a high-ranking delegation of diplomats, led by Kasit Piromiya, Thailand’s Minister of Foreign Affairs, toured the Teesside Cast Products plant.

For security reasons, the delegation wasn’t made public before the visit.

It is thought that Thai company SSI is in the final stages of a deal to buy the Redcar steel works from Corus, which will create or safeguard up to 1,500 jobs.

The Sunday Sun can today reveal the Foreign Minister was accompanied by the Thai ambassador to the UK, His Excellency Kitty Wasinondh, and SSI President Win Viriyaprapaikit, as well as top industry experts and high-profile Government advisers.

The party of more than 20 people battled the elements to travel from London to carry out their fact-finding mission to the Tata plant.

The high-ranking officials were shown the blast furnace, before Mr Piromiya spoke to key local parties, including Geoff Waterfield, chair of the Teesside multi-union workers’ committee.

There was a feelgood factor about the trip – prompting more optimism about the possibility of a deal. The Thai foreign minister even expressed delight at the novelty of being in a blizzard, joking that Corus bosses had laid it on especially.

He also gave his approval to the plant’s location next to the River Tees, revealing how Thai culture regards being close to a river as an omen for good fortune.

Liberal Democrat Ian Swales said: “The visit was very positive and the minister was pleased to be here.

“It does give hope. We know that the deal is not finalised yet and there are still things to sort out but clearly we wouldn’t be getting this kind of visit if progress wasn’t being made.

“There are finalities to put in place but we’ve got to be optimistic that delegates of this calibre are coming to Teesside.”

Also there to greet the Thai party were Tom Blenkinsop, Labour MP for Middlesbrough South and East Cleveland, and a representative from Tees Valley Unlimited.

The UK Government invited the Thai Foreign Minister and his advisers to Britain for an official visit.

Mr Piromiya personally asked to be taken to Corus and the secret tour was quickly arranged.

He is now expected to return to London to enter into trade talks with Foreign Secretary William Hague.

A spokesman for SSI said: “The visit wasn’t marking any milestone in the process as negotiations are ongoing but the Thai Foreign Minister was in the UK and asked if he could come and see the site because it is an important transaction for the Thai and UK governments.”

sundaysun.co.uk

[Nostradamus]

Thais should be prohibited from owning certain businesses and land in the UK and prohibited from certain occupations.

[BugginOut]

Does this mean we can expect lots of yellow shirted right wing reactionary nutters protesting to bring the government down and new elections because an important national asset has been sold to foreigners.

Sorry, just noticed its a thai company buying a british firm, should be ok then

It's an Indian firm.

[prefabs]

At least the Geordies will get a wage that they deserve at long last.

Not too many Geordies in Teeside

[hazz]

Does this mean we can expect lots of yellow shirted right wing reactionary nutters protesting to bring the government down and new elections because an important national asset has been sold to foreigners.

Sorry, just noticed its a thai company buying a british firm, should be ok then

It's an Indian firm.

Interesting point, AIS the reaction to the sale of which i was referring was seen by many thais as thai, despite as much of it as possible being offshore. whilst tata steel europe is seen as indian although its fulling incorporated in london. In the age globalisation how do you decide on the nationality of a company?


however the point I was making, was a sarcy comment, regarding "thai" reactions to anything thai becoming "not thai". and how many of our current political troubles here directly relate to how many thai's reacted to the then PM selling off AIS to the Singaporean's; have how the PM decided to deal with it without thinking the consequences through.

[nigelandjan]

Doubt the staff canteen will do much trade if they send some operatives over ,, them northeners love deep fried porridge ,, they wont want a bowl full of hedge clippings sautead in chilli

[crippen]

Redcar steel plant a step closer to coming out of mothballs
• Thai steelmaker starts raising funds to buy Corus plant
• Up to 1,000 could be re-employed on Tees
Phillip Inman
guardian.co.uk, Monday 27 December 2010 19.47 GMT

The Redcar blast furnace plant, which is currently mothballed. Thailand's Sahaviriya Steel Industries is raising funds in a rights issue and private placement to help finance its purchase. Photograph: Gary Calton
A plan to unwrap the mothballed Corus steel plant on Teesside and re-employ up to 1,000 workers came a step closer tonight after Thailand's main steel producer said it had started to raise part of the £400m it needs to buy the business.

Sahaviriya Steel Industries (SSI) told investors it would raise about 6 billion baht (£127m) in a rights issue and private placement to help finance its purchase of the Redcar plant.

The Thai company agreed in August to buy the plant from steelmaker Corus, owned by India's Tata Steel, to boost its position in the global steel market.

Unions representing former workers at the plant were expected to welcome the plans after talks with the proposed new management revealed a need to re-employ between 800 and 1,000 of the plant's 2,000 former staff.

Corus, Europe's second-largest steelmaker, had mothballed the plant in February after failing to find a long-term partner for its output. A preliminary agreement in 2009 with two members of the four-strong consortium that bought the plant's output, Italian steelmaker Marcegaglia and South Korea's Dongkuk, collapsed after months of wrangling.

The two firms had agreed to buy an 80% stake in the unit, valuing it at an estimated £480m. Under the memorandum of understanding, they were due to take a majority holding in the operation, which produces steel slab, leaving Corus with a minority stake.

At the time of the deal, Corus cut 2,500 jobs in the UK at Llanwern and Port Talbot in south Wales as well as at Rotherham and Stocksbridge in Yorkshire. No mention was made of the 2,000 workers at Teesside because of the planned sale.

The closure was described as "devastating" by union leaders and local councils for the effect it would have on local employers and shops once the jobs were lost.

Since the summer, talks with SSI have progressed, with several constructive meetings between union officials and SSI management.

The Thai company said it expected to complete the financing by February and open the plant again by the summer. SSI's president, Win Viriyaprapaikit, said: "After the fundraising, the acquisition should be completed in the first quarter of 2011."

SSI has said the deal would enable it to fulfil its longstanding objective of becoming a fully integrated steel producer with both primary steelmaking and rolling facilities. It expected the acquisition to help boost its production and sales to 3m tonnes in 2012, reducing production costs and increasing its competitiveness.

"After the completion of the purchase, we expect the plant to be able to produce slab for SSI within six months. We are confident that sales and production should increase to 3m tonnes in 2012," Win said.

However, SSI investors gave the announcement a lukewarm reception.

To operate the plant, SSI is looking for loans worth about $650m (£420m), including $200m for working capital, Win said. "All the funding will boost our debt-to-equity ratio to 2.0 from 1.0 now," he added.

Worries about the rise in debt pushed shares in SSI, valued at $634m on the bourse, down to the lowest in a month at 1.43 baht, 2% lower than Friday.
Redcar steel plant a step closer to coming out of mothballs | Business | The Guardian

[Mid]

Job hopes as Corus steel plant sold
Rachael Fergusson
25 February 2011

Hopes of new jobs as steel plant sold

A steel plant which has been mothballed for the past year has been sold to a firm from Thailand, raising the prospect of hundreds of new jobs.

SSI, Thailand's largest steel maker, finalised an agreement to buy the Corus Teesside Cast Products site in Redcar.

Unions and local politicians welcomed the new announcement from SSI and Tata, which owns the Corus steel company in the UK.

Business Secretary Vince Cable said the deal would help to secure 700 jobs at the plant.

“This deal is very good news for workers at the Teesside plant and the region. I welcome the return of steel making to this historic steel site later this year.

"Coming just over a year after the plant was mothballed, it is a tribute to both companies involved - Tata Steel and SSI,” Cable said.

Both parties had worked hard since August to reach a successful outcome on what had been a “complex negotiation”, he said.

“This is a significant inward investment by SSI which will help to sustain the 700 jobs at the plant and create new ones at the site and the wider local economy.”

Unite national officer Paul Reuter said he was “delighted this deal has been put together and it's a testament to the determination of the workforce to save the plant”.

“The successful sale is the result of the unions, Tata, SSI and the local community working together,” Reuter said.

The deal values the business at $469 million.

The acquisition is expected to lead to the creation of more than 800 jobs on top of the existing workforce of 700 at the steel plant, which will be brought back into full operation. The news comes a year after the plant was mothballed in February 2010.

TCP has the second-largest blast furnace in Europe and slab production capacity of 3.5 million tonnes per year.

The production facilities include iron-making facilities, steel-making facilities and the infrastructure and logistics facilities required to support full production.

The announcement follows a memorandum of understanding signed between SSI and Tata in August last year. The transaction is expected to complete in four to six weeks.

Karl-Ulrich Kohler, who heads Tata Steel in Europe, said: “I am very encouraged that after all our efforts we have been able to reach this agreement, which is good news for the highly skilled and dedicated Teesside workforce.”

Tata Steel intended to retain a major presence in Teesside, Kohler said.
“After the successful completion of this transaction, Tata Steel will remain one of the largest private sector employers in the area with more than 1,800 employees.”

SSI president Win Viriyaprapaikit said it was “historic moment for both Teesside and SSI, one that would not have been possible without the local community's passion for steel-making and the help of the UK Government”.

“Owning Teesside Cast Products will enable us to achieve our long-standing ambition of becoming a fully integrated steel producer. This transaction will give us a strong platform for future growth, increase our resilience to industry cycles and give us opportunities to diversify into new markets and products.”

eandt.theiet.org

[nigelandjan]

This is a significant inward investment by SSI which will help to sustain the 700 jobs at the plant and create new ones at the site and the wider local economy.”

As we speak the local DIY chains are furiosly stocking up on pidgeon lofts + ferret cages ,,,,,, the local Primark are shelving up on cloth caps ,,,,,,,,,its boom time !

[English Noodles]

^Fucking idiot.

[nigelandjan]

^Fucking idiot.

As your ^ is on the next page who you calling a fuking idiot ??

[corned dog]

You u tit

[English Noodles]

You u tit

Thank you.

[nigelandjan]

Bit of a " little girls " remark to make .

However I have made a note in my diary about your difficult time in the month and will go a little easier next time