400 jobs under threat at Corus

ANGLO-Dutch steel giant Corus could slash over 400 jobs as part of a £130m investment programme at its Scunthorpe steelmaking plant.

The company said it is enhancing the production process at Scunthorpe, where it makes structural sections, rail and wire rods, with the loss of 161 jobs.

Work will also be transferred from the nearby Workington plant, which currently employs 256 people in rail manufacturing.

The investment includes installing a new steel casting machine to replace an existing caster and intermediate rolling mill, as well as developing rod and section mills to improve flexibility and capacity.

It will also add an on-site customer service centre and expand production to include longer rails of up to 120 metres in response to customer demand.

The job transfer will begin in 2006 and the process is expected to be completed by August the following year. The company said it will evaluate 'other long-term' options for the Workington site in consultation with unions.

Long products executive director Paul Lormor said: 'The development represents a major step forward for the division, and is part of Corus' long products strategy to improve competitiveness of its core products, add value and provide a platform for future growth.'

Shares in the company rose 1½p in early morning trading to 61¼p.