Teesside Cast Products’ steelworks suffered a severe blow last April when a consortium of overseas buyers suddenly decided to withdraw from a binding 10-year contract to purchase slab. The consortium members were contractually obliged to buy almost 80% of the plant’s output, but they broke the contract less than halfway through its course.
John Bolton, managing director of Teesside Cast Products, confirmed that the company was suing the consortium for breach of a “legally binding” contract. But he said that this action was likely to take several years and that any positive result in the company’s favour would come too late to affect the plant’s future. |
