Corus job cuts

LOCATIONS Llanwern - 1,340 Shotton, Deeside - 319 Ebbw Vale - 780 Teesside - 234 Bryngwyn - 127 Strip products - 200 DIVISIONS Head offices - 400 Construction and Industrial - 1,086 Engineering steels - 390 Tubes - 298 European Market Unit - 292 Electrical steel - 276 Special profiles - 46 Special strip - 35 Rail 27 Corporate centre - 200

Union leaders and politicians condemned the decision, saying Corus had "cut the life blood" of communities in areas with the worst unemployment in Wales.

And speaking in an emergency Commons statement, Stephen Byers, the trade and industry secretary, made an impassioned plea for the company to think again.

"On behalf of 6,000 steelworkers, their families and the communities in which they live, I urge Corus to think again and work with us to identify a better way forward," he said.

The stockmarkets, however, welcomed the decision, with the Corus share price rising 8p to 82.75p.

Plant closures

Hardest hit are the iron and steelmaking operations at the Llanwern plant near Newport, which will be closed, together with the tempering facilities at the factory.

The tin plating factory at Ebbw Vale will be closed, as will be plants in Deeside, Teesside and Bryngwyn.

But other parts of Corus UK will face cuts as well, with job reductions striking everybody - from head office down to small specialist divisions.

Announcement

"The radical measures announced today will significantly improve the group's competitiveness and are crucial to the future of Corus's employees, customers and shareholders," Sir Brian Moffat, chairman of the company said.

"However it is with deep regret that despite the support and commendable track record of our UK workforce, further significant job reductions have to take place," he added.

He also said that the restructuring would create a "sound platform" for the group to secure sustainable growth.

Workers learned their fate at the same time as the company released a statement to the London Stock Exchange.

Swift condemnation

They have taken the heart out of our industry, shattering the workforce and their communities

Bob Shannon, AEEU

The announcement brought swift reaction from politicians and union officials.

"Corus has kept us in the dark, then hit us for six," said Bob Shannon, spokesman for the Amalgamated Engineering and Electrical Union.

"They have taken the heart out of our industry, shattering the workforce and their communities," he added.

Bill Morris, the general secretary of the T&G union spoke of "appalling news for South Wales". He added the "loss of Ebbw Vale will cut the life blood of a community with the worst unemployment in Wales".

Corus briefed government ministers about the scale of the job losses before the announcement was given to the stock market.

"The announcement by Corus stands in stark contrast to other manufacturing companies who are prepared to take the long-term view," said Stephen Byers, the trade and industry secretary in a statement.

End of speculation

The long-awaited announcement ended weeks of agonised waiting for Corus' workforce.

Corus blamed the restructuring on declining demand for its flat steel products, particularly among carmakers, competition overseas and the high value of the pound.

The company, formed in 1999 through a merger of British Steel and Dutch firm Hoogovens, axed 4,500 jobs last year, but signalled further cuts when its two chief executives resigned before Christmas.

Thousands of jobs are threatened at Llanwern

Political efforts to prevent widespread job losses failed, while the prime minister's spokesman, Alastair Campbell, launched a fierce attack on Corus on Wednesday.

Welsh Assembly First Minister Rhodri Morgan said no stone had been left unturned in trying to reach a solution.

"I just hope there is some underlying strategy which, when the announcement comes, will be there for all of us to read."

A last minute appeal by Welsh Secretary Paul Murphy for Corus to act positively was the final act in a succession of political lobbying efforts.