Corus investment saves Welsh jobs

Thousands of jobs depend on Corus' investment in Llanwern

Anglo-Dutch steelmaker Corus has announced a multi-million pound investment in its Llanwern works, safeguarding thousands of jobs in South Wales.

Today is a great day

Michael Leahy, Iron and Steel Trades Confederation

The plans to overhaul the blast furnace at Llanwern near Newport should ease worries that Corus might close the plant, which employs about 3,000 people.

In July, Corus had said that 450 of the 3,000 jobs would have to go as part of the firm's "cost and efficiency programme".

Across the UK, the company has already axed 4,000 jobs this year.

Corus, formed after the merger of British Steel and Koninklijke Hoogoven, said the strong pound and tough competition were forcing it to streamline operations.

Llanwern 'under review'

The £35m job to reline the furnace at Llanwern will start in September and should be completed within one year.

However, Nick Cragg, managing director of Corus Strip Products, warned that trading conditions were still difficult for the company and said the investment at Llanwern would be subject to a continuing review.

"In these circumstances, it is difficult to take a very long-term view, especially on a multi-million pound investment and hence the need for the ongoing review," Mr Cragg said.

Trade unions welcomed the news, calling them a "very positive step forward".

Michael Leahy, the general secretary of the Iron and Steel Trades Confederation, said: "Today is a great day."

But he also said: "Llanwern, and the rest of the steel industry, still needs action from the government, to talk down the pound, to change electricity pricing policy to help big users, and to lower still further the climate change levy on manufacturing."