Corus, the Anglo-Dutch steel maker, is to put its aluminium operations on sale for up to �1bn ($1.4bn), newspapers have reported.

The announcement will come on Monday when Corus is expected to unveil annual losses of �450m-500m, the reports said.

Proceeds from any sale would be used to reduce debt and help pay for reorganisation of the struggling company.

Corus's troubles, stemming partly from low world steel prices and tough competition, have been exacerbated by a strong pound which has made purchases out of the UK expensive for international buyers.

Redirected

The recent decision by the US to impose tariffs of up to 30% on steel imports is merely the latest blow.

Although Corus is not a large exporter to the US it now faces the threat that cheaper steel from Russia and the Asia-Pacific region once destined for the US will be redirected to its home markets.

EU officials have said the European steel industry's losses would be about $2bn a year over the three-year life of the tariffs.

On a brighter note for EU producers, officials have also raised the prospect of retaliatory action against the US.

Buyers line up

Potential buyers for Corus's aluminium arm include major world metals groups Alcan, Alcoa and Pechiney as well as private equity groups.

The assets include smelters at Delfzijl in the Netherlands, Voerde in Germany and a part-owned venture in Sept-Iles, Canada, producing a total of 244,000 tonnes a year.

There are also rolling mills in Germany, Belgium and Canada and factories making extruded aluminium products in Germany, Belgium and China.

Corus's total output of rolled and extruded products is about 520,000 tonnes a year, making it one of Europe's largest manufacturers of aluminium products.

Back in the FTSE

Corus was formed in 1999 through the merger of British Steel with Dutch firm Hoogovens.

Since then, thousands of jobs have been cut in an effort to drive up competitiveness.

The possible sale of the aluminium arm raises hopes of Corus's steelworkers that fresh investment will flow in their direction, safeguarding jobs.

A huge facility at Port Talbot in south Wales is one of those that might benefit, reports say.

On Monday, Corus is set to re-enter London's FTSE 100 index of leading shares.