Steel jobs go at Port Talbot

Jobs in the steel industry have been lost

Steel giant Corus has axed jobs at a south Wales steel plant as part of a cutbacks package in the face of expected heavy losses.

Under plans to restructure its technology research business, 200 jobs are to go at the firm's Port Talbot plant.

But fears of major job losses at Llanwern steelworks near Newport have proved to be unfounded.

And the company's other Welsh plants at Ebbw Vale, Trostre and Shotton will not be affected.

Corus - formerly British Steel - is also cutting 1,200 jobs from its engineering steels section, mainly affecting plants at Rotherham and Stocksbridge in South Yorkshire.

Another 30 research jobs will go at Teeside.

Port Talbot: Job cuts

Unions had been fearing a much bigger cutback but still reacted with dismay to the news.

The steel union, the ISTC, called it an "unwarranted and ill-considered response to temporary difficulties".

The union said the cuts would do permanent damage to the steel industry in Britain and accused Corus of looking for a "quick fix".

The ISTC, together with other unions, is demanding a meeting with he company's two chief executives to insist that Corus reconsider its approach.

And First secretary Rhodri Morgan has said he wanted to explore with Corus, as a matter of urgency, the possibility of retaining a research facility in Wales.

He said he wanted a "team-Wales approach" so that a package could be put together which will persuade Corus that Port Talbot should retain its research and technology facilities.

Corus said it hoped the restructuring programme would reduce costs through an upgrading of facilities and more flexible working.

The moves should provide a sound basis for securing the future of the business, said the company which was formed last year by the merger of British Steel and Dutch firm Hoogovens.

Llanwern: Fears unfounded

All the jobs will go by the end of next year and analysts believe the restructuring, including redundancy payments will costs Corus between £30m and £40m.

The company produces financial figures later this month, which the City believes will show losses of up to £150m for the first six months of Corus's existence up to March of this year.

"We are aiming to compete more effectively because over the last five years we have seen UK demand come down 20% as, increasingly, manufacturing moves offshore into mainland Europe," said a company spokesman.

Corus said the strong pound had "exacerbated" the position but stressed the main problem had been a fundamental change in the market which the company could not ignore.