July 24 (Bloomberg) -- Tata Steel Ltd.’s Corus unit, Europe’s second-largest steelmaker, made “unrealistic” proposals to resolve a dispute over a supply agreement, said the group of steelmakers involved in negotiations.
“The proposals made by Corus were unrealistic and not reasonably calculated to create an environment for productive discussions,” the group said today in an e-mailed statement.
Corus is battling to keep open its Teesside Cast Product Plant in northern England after the group of four steelmakers walked away earlier this year from a 10-year agreement to buy 78 percent of Teesside’s output. Mantua, Italy-based Marcegaglia SpA, South Korea’s Dongkuk Steel Mill Co., Luxembourg-based Ternium SA and Swiss-Italian steelmaker Duferco Participations Holding Ltd. abandoned the accord as steel demand plunged.
Corus said yesterday the group of steelmakers was “unable to guarantee long-term off-take in sufficient volume.” Corus said it will pursue “other solutions” for the plant, which produces steel slab.
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