Steel chiefs quit

Tuesday brought more unhappy reading to Corus watchers

The long-running spate of job losses at steelmaker Corus spread to the boardroom on Tuesday, when the firm's two joint chief executives resigned.

The ailing firm, formed last year from a merger of British Steel with Holland's Koninklijke Hoogovens, said it had sought the leadership change to enable a "major restructuring" at loss-making operations.

The steelmaker, which employs about 60,000 people worldwide, has axed about 4,500 jobs this year in a drive to swallow a 20% cut in UK demand for steel in five years.

But company chairman Sir Brian Moffat said continuing weak domestic demand for a type of steel used by carmakers, coupled with an oversupply from European foundries and the strength of sterling, had created the need for a further shake-up.

Major shake-up

"In the light of this developing situation, and the continuing strength of sterling against the euro, it is inevitable that a further major restructuring will have to take place in the UK," Sir Brian said.

"In these circumstances the board considered that a change of leadership of the group was desirable."

Sir Brian, who will take on the chief executive role until a replacement is found, said he would reveal more about the restructuring next year.

Markets reacted favourably to the news, sending Corus shares 5.75p higher to 75p by the close, well off the day's low of 65p.

Stalwart steel bosses

The resigning chief executives, John Bryant and Fokko van Duyne, had played a major part in the formation of Corus in the October 1999 merger.

John Bryant: helped implement the October 1999 merger

Mr Bryant, appointed chief executive of British Steel at the beginning of last year, had been in the steel industry for 35 years.

And Mr van Duyne, appointed chairman at Koninklijke Hoogovens in 1998, joined the firm 30 years ago straight from university.

Corus, which produces about 21 million tonnes of steel a year, posted half-year losses of £113m in June.