Anglo-Dutch steelmaker Corus has said that, thanks to stifling competition, it is to sell its aluminium businesses.

The firm, reporting a pre-tax loss of �462m for last year, said it was "immediately" beginning the process of selling the operations.

The sale of the units, based mainly in Germany, Canada and Belgium, will mark failure in a drive to diversify Corus from its steel heritage into a number of metals markets, the company admitted.

"Our judgement is that while we have very good businesses, the pace of change in the [aluminium] industry is leaving us with fewer options to pursue a growth strategy," chief executive Tony Pedder said.

"This divestment will bring to an end aspirations for a multi-metals strategy."

Steel losses

Corus' aluminium businesses, which supply firms such as aircraft and ship makers, were among the company's best performers last year, achieving an overall operating profit of �58m.

The core steel plants lost �446m, as oversupply on world markets, and the global economic slowdown, hit prices.

But Corus predicted that, with steelmakers worldwide slashing output, it would be able to raise prices in coming months.

It has urged the European Commission to impose retaliatory measures on the US after Washington two weeks ago imposed tariffs of 30% on steel imports.

The tariffs "will be resisted by the European Commission... and we strongly support this stance", Corus chairman Sir Brian Moffat said.

Job losses

Corus took the unusual step of announcing Monday's statement to union representatives ahead of investors.

The firm admitted that 2001 had been a "difficult period" for staff, as the firm progressed a restructuring which has cut the number of employees on the payroll by 12,200 last year.

This figure includes 6,600 posts transferred with the sale of a stainless steel business, but excludes 4,400 job losses scheduled by 2004.

"Change on the scale that Corus has undergone over the last year or so is never easy, and presents additional challenges to all," Mr Pedder said.

In the City, Corus shares stood 2p higher at 89p in early trade on Monday.

Corus was formed in 1999 by the merger of British Steel with Holland's Hoogovens.