Corus Steel, Europe's second biggest steelmaker, today said it will close the Teesside Cast Products (TCP) unit in north-east England, after an international consortium failed to honour its contract to buy up its products.
The closure of the plant is expected to result in the loss of around 1,700 jobs, Corus said in a release.
Corus has already announced in May 2009 of mothballing some of the facilities belonging to its plant in north-east England at the end of January after the consortium failed to abide by a binding contract.
Corus said it was mothballing the Redcar blast furnace, Lackenby steelmaking and the South Bank coke ovens, belonging to Teesside Cast Products (TCP).
TCP's Redcar blast furnace, Lackenby steelmaking and the South Bank coke ovens will be mothballed at the end of January 2010.
"Corus intends to keep open a number of operations, including the Redcar wharf, Redcar coke ovens and some of the power generating capacity," the release said, adding, "Corus will continue to have a substantial presence in the Teesside area, employing more than 2,000 people at operations in Hartlepool, Skinningrove, the Teesside Beam Mill and Teesside Technology Centre."