Anger as Corus boss is axed

AN ALMIGHTY unseasonal row has broken out at Anglo-Dutch steelmaker Corus after its French chief executive moved to sideline one of the company's most senior Dutch directors.

Philippe Varin's decision to sack Peter Jongenburger after three-and-a-half years leading the management board of Corus Nederland has angered Dutch workers.

In a statement, they said the sacking of Jongenburger was 'incomprehensible', adding: 'The central works council considers that this step will have major negative consequences for the future relations between the British and Dutch parts of the company.'

Varin has masterminded a recovery at Corus, formed five years ago from a merger of British Steel and the Dutch Hoogovens, from massive losses and a share price of just 3¾p. Operating profits for 2004 will come in at £600m and the shares have returned to the FTSE 100 index.

Varin has shaken up management of the group to 'internationalise' its outlook - which commentators have also taken as an attempt to defuse the bitter rivalries between cabals of former British Steel and Hoogovens managers.

Corus has yet to appoint a replacement for Jongenburger, who will continue in his operational role of chief research, development and technology director.

But Dutch workers fear Corus executives in London will foist a foreigner on them to oversee operations in the Netherlands.