Corus announced the probable closure or mothballing of their steel factory on the Tees employing 1700 people and local businesses. It has contracts for 5 more years but the overseas customers are backing out of the deal as the steel price has fallen too far below their contracted level.
The recession reducing demand. The present source of minerals and destination of the steel. The ability to produce steel cheaper or more locally overseas all stood against the Teesside plant. Although it is said the plant is very efficient and a buyer might be found.
Coal, minerals and ship building all came together to make this an area of steel making and some remains.
Corby is one of the best known one-horse towns whose steel mill closed. Government support helped to ease it and some success is claimed although I’ve read accounts that it’s more a sticking plaster than a solution.
A worker on the radio spoke of the apprenticeships, skills and experience of the workforce and you can only imagine where these core skills will be found in years to come, if they are ever needed. I was an apprentice for 5 years and although I worked in an office for most of my life the ability to do those tasks still exists and sometimes I’m amazed at the lack of basic skills and knowledge in some younger people. But would you learn to wire and file if you could sit on a phone all day, yes I’d say.
If this is coupled with reports of the chemical industry on Teesside the future for the area doesn’t look so good. Yet this is Labour heartland and it seems improbable that the government has thrown so much cash at part of the economy where it wouldn’t expect much support and is letting its heartlands die. Maybe they rue putting all their eggs into one basket. I think they should, but it’s part of a greater problem to Europe and possibly the world if expansion in Asia continues at its current rate. Even the mighty industries of Germany are feeling the draught.