Steel producer Corus, part of the Tata Steel Group, is to begin mothballing its Redcar plant, resulting in the loss of up to 1,600 jobs and possible industrial action.

The government has pledged to do all it can to prevent the site from closing down permanently, and Tata Steel is currently looking for a potential buyer.

Unite National Officer for the steel industry, Terry Pye, said: "Unite believes the mothballing of Corus' Teesside site is a disgraceful charade. The union has reason to suspect that Corus never had any intention of selling this plant and they now intend to close the site which will have a devastating affect on the local community, which has a rich 150 year heritage of iron and steelmaking.

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"Corus is trying to give the impression that it wants to mothball the Teesside site, in a view to sell it once they have interested buyers. However, Unite think this is a smokescreen. We are aware that serious offers have been made to Corus that would allow production to remain at the plant, but the management has dismissed them all out of hand.

"We will be meeting other trade unions next week to discuss what action to take and will be calling on our members at the other Corus sites to take strategic action to force the company to take heed of the offers it is receiving to save the plant and the thousands of skilled jobs in an area already decimated by job losses."

The plant has been on the market since May 2009.

(CD/GK)