UK's leading steelmaker Corus announced its plans to close a factory in Teesside, making as many as 1,700 workers redundant.
Company’s CEO Kirby Adams blamed an international consortium, which cancelled a deal to purchase around 80 per cent of the plant's production.
Kirby Adams also said that the group had suffered losses of 130 million pounds since April as struggled to find a rescue deal.
Business Secretary Lord Mandelson expressed disappointment over Corus’ inability to find a long-term answer to the difficulties they had been facing since earlier this year.
Speaking on the issue, Mr. Mandelson added, “This will clearly be a very difficult time for the workforce.”
Angry union leaders slammed the decision and demanded the Government to step in to save jobs.