This week Vera Baird met representatives from Corus and Tata to discuss possible effects of the global economic situation on steel production on Teesside

Following the meeting, she said

"I met today with Ian Goldsmith and Manzer Hussain from Corus and Tata to probe them on the implications for Redcar steelworks of the state of the steel market and the economic downturn. Both men confirmed their assessment that their current moves to idle three blast furnaces and cut overall production by 30% until approximately March are not a precursor to stricter action. There are no plans for any redundancies on Teesside.

"I was grateful to them and we had a very informative discussion in which they were equally frank about the seriousness of the position and about their intention to manage its impact as advantageously as possible. It appears that Tata-Corus is working well as a combination only one year old now. There are emerging synergies which are leading to savings and increased profitability. Further, aspects of the Asian arm of the business are capable of offering support to the European sector as the downturn is having less impact in India where Tata's ownership of mining resources make fluctuating costs of raw materials a less significant factor.

"Redcar steelworks is in a strong position too because of its particular long-term contract with overseas partners for the bulk of its output. I am looking forward to a meeting with local manager John Bolton which Tata-Corus are arranging for me so that I can be further briefed on the local situation. It is imperative at this time that industry and local MPs keep each other fully informed and agree to work together."