The company said that any decision to mothball is likely to lead to a very significant number of redundancies.
Corus said the development had become "unavoidable" because of a failure by four international slab buyers to fulfil their obligations under an Offtake Framework Agreement (OFA).
Chief Executive, Kirby Adams, said: "I am extremely disappointed that the consortium members have seen fit to take this irresponsible action. Their unilateral termination of a legally binding 10-year contract could bring to an end a fine heritage of steelmaking at Teesside. We regret the distress their action will cause TCP's dedicated employees, who have worked steadfastly in the interests of the consortium."
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Corus will explore alternative options that might secure a viable future for TCP and its employees.
Business Secretary Peter Mandelson spoke to Kirby Adams, the chief executive of Corus, upon hearing the news.
He expressed concern that the unilateral termination of the Offtake Framework Agreement by Marcegaglia, Dongkuk Steel Mills, Duferco and Alvory, and the legal challenge to this should threaten closure of the entire plant.
"It is essential that Corus does everything it can legally, and with the Government’s assistance, to reinstate the Offtake Framework Agreement," Peter Mandelson said.
"It is unacceptable that such a development should threaten jobs on such a scale, with such a potentially devastating impact on the area.
"The Government stands ready to do what it can support the company. We are not prepared to reconcile ourselves to inevitable closure of this plant."
(CD/JM)
