Corus Steel: Government Announces £60 Million Teesside Investment

Corus Steel: Government Announces £60 Million Teesside Investment

The Government has responded to the news that steel producer from its Teesside workforce
by announcing over £60 million of investment in the North East “to support the
region’s industrial .”

The investment will generate an estimated 3,000 new jobs in the short to
medium term and sustain over 10,000 jobs long term.  Immediate investment will
be structured in two parts:

  1. Part 1 will address immediate issues arising from the closure of the , including providing around £10
    million for and support for people to start
    businesses and up to £20 million investment in the nearby Wilton International
    site, the other major employer in the vicinity to strengthen and sustain its
    competitiveness and employment.  The enterprise support will be targeted
    primarily at and could create up to 300

  2. The £30 million of additional money in part 2 will equip Teesside to move
    beyond traditional heavy industry to realise its potential to be part of the
    UK’s low carbon manufacturing base.  This includes investment in redevelopment
    of industrial land and infrastructure.  It also includes investment to establish
    bio-based materials, to reduce energy use of industry in the area, for
    initiatives on carbon capture and storage and support for technology transfer
    and new business practices.

Speaking to a meeting of local representatives
including industry, local government and agencies from the North East, Peter
Mandelson outlined how Government and the Regional Development Agency (RDA), , would act support existing industry, encourage
enterprise and innovation and drive skills development.  The and
are each offering £30 million investment to meet the costs of these projects.

Business Secretary Peter Mandelson said:

“Following the announcement that  we must act to
secure long term employment in sustainable manufacturing in the region.  Today’s
investment from the Government and the RDA will strengthen existing industries
and create new opportunities.  Teesside has the skills, the workforce and the
infrastructure to compete in future advanced and low carbon manufacturing.
 We’re acting to ensure they have the best support to succeed.”

Alan Clarke, Chief Executive and Chairman of the
Corus Response Group, said:

“This package of support builds upon and accelerates projects which will help
underpin the future economy of the Tees Valley.

“It is very much addressing immediate priorities while also looking to the
longer term to put in place the infrastructure needed to support the major
changes the process sector and other industries are embracing.

“Some of this investment package will directly support the work of the Corus
Response Group which is meeting in Redcar tomorrow to take forward a package of
assistance for workers facing .”