Corus officials have told the workforce that the mothballing of the Teesside Cast Products (TCP) blast furnace would go ahead on Friday.
Council Leader Councillor George Dunning said:
"I'm heartbroken. I had 12 years working for TCP, my father worked in the steel industry for 44 years and my grandfather - it's been a Dunning steel industry dynasty, and it's gone.
"We have a world-class steel producing plant and I'm absolutely amazed no buyer has come along to save it.
"Throughout my political career, this is the worst news I've been given for our Borough and it's taken the lifeblood out of Teesside's manufacturing industry.
"It leaves the Borough with a mountain to climb, but we knew what could happen and we have been working very hard since last summer preparing for the worst."
The Council is part of a Resource Centre, staffed by a 50-strong team, in Steel House, Redcar ready to offer help and support to the affected workers. This has been set up by the Regional Task Force and is being led by Jobcentre Plus.
The Council's Cabinet Member for Economic Development Councillor Mark Hannon said:
"We have been fighting long and hard to keep steel making in Redcar and we know a lot of work has been done to try and achieve this.
"But the prospect of finding a new buyer seems a remote chance now, so our concern must be to help those workers and their families affected and to accelerate new businesses to create jobs."
The Council believe the £60million announced by Business Secretary Lord Mandelson in December for the Tees Valley Industrial Programme will be a "real shot in the arm".
Councillor Dunning added:
"It offers direct and immediate help to create new opportunities and we are working with One NorthEast to bring forward exciting projects to create new jobs and businesses."
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