Hopes of saving 2,000 jobs at Tata Steel?s Corus unit appeared to be dashed recently after a consortium of four international companies abandoned talks with Corus and pressed ahead with plans to ditch an allegedly legally binding contract.

Corus and the four consortium members?Marcegaglia of Italy, Dongkuk Steel of South Korea, Duferco Participations of Switzerland and Alvory of Argentina that were party to the agreement to take almost 78% of the output from Teesside Cast Products (TCP)?met on Thursday to consider the future of the agreement that they unilaterally terminated on

April 7, 2009.

?Unfortunately, it was clear from the meeting that the consortium is unable to guarantee long-term offtake in sufficient volume and that Corus needs to pursue other solutions,? Corus said in a statement.

The future of 2,000 workers whose jobs depend on the plant is now in doubt as the consortium was its single largest client buying four-fifths of all the steel it produced. Corus said it has succeeded in stretching TCP?s orderbook until the end of August and expects the September orderbook to be filled in the next few days but could not rule out the possibility that it will be mothballed before the end of the year.

Corus CEO Kirby Adams said in a statement, ?We feel great sympathy with our employees and the Redcar community because of the continuing anxiety they are experiencing about their future due to the consortium?s termination of the offtake agreement without notice. We have kept the plant going for 100 days without any external business and continue to do everything in our power to keep TCP in operation, despite the consortium?s breach of contract and the economic downturn.?

According to the company, only since the middle of June has Corus been free to explore alternative transactions that might lead to an acquisition of TCP. However, the extended orderbook will give extra time for the company to pursue a long-term solution for the business.

Tata Steel?s shares on Friday were up 6.06% to close at Rs 439.90 on the Bombay Stock Exchange.