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Guarded optimism on Teesside over Corus steel sale

Richard Moss | 12:07 UK time, Thursday, 27 May 2010

Corus steelworksWhisper it and don't get carried away, but .

to talk to a potential buyer - SSI - and the Corus management are talking about the possibility of a sale.

But there's still some way to go yet.

I've just spoken to the new Middlesbrough South MP Tom Blenkinsop. He's heading off to Thailand this evening with national and local union officials and the new Redcar MP Ian Swales.

He says he doesn't want to get carried away yet as he's wary of offering another false dawn to a workforce that has had its hopes raised and dashed too often.

He told me we are still in the same situation as we have been for several weeks.

He believes the Thai steelmakers SSI are credible bidders but the ball lies firmly in Corus's court.

They need to prove that they are serious about finding a new buyer for the Redcar Teesside Cast Products works.

Tom Blenkinsop MPFrom that point of view at least the company is making the right noises.

The Corus Chief Executive, Kirby Adams, has said talks are continuing and he's expecting a "good result".

The key may be the market for steel. The unions and the Corus management believe demand is rising again in Europe, and that could offer a future for steelmaking on Teesside.

And Corus's owners .

If the current negotiations do produce a sale, it would be a remarkable development, but you suspect the workers will greet the news with a healthy dose of cynicism.

And even if a sale did go through we don't know how many of the 1,600 workers who are being laid off will be needed.

The delegation to Thailand is back on Sunday, so we may know a little more then.

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