Anglo-Dutch steelmaker Corus has begun its exit from the aluminium market by selling its interest in a Canadian smelter.

The firm gained $165m (�108m) from the sale of its 20% stake in the Aluminerie Alouette smelter in Quebec.

The sale, to Canadian metals giant Alcan, represents "the first step" in in Corus's sale of its aluminium interests, chief executive Tony Pedder said.

Corus was on track to complete its exit from the market by the end of the year, he added.

Tough competition

Corus's aluminium operations were among its best performers last year, recording an operating profit of �58m in a year when the company lost �462m.

But the firm in March revealed fears over competition in the market, and plans to begin selling its aluminium interests "immediately".

"The pace of change in the [aluminium] industry is leaving us with fewer options to pursue a growth strategy," Mr Pedder said at the time.

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

Corus has instead focused on its core steel operations, and last month announced proposals to merge with Brazilian rival Companhia Siderurgica Nacional, a tie-up which would allow easy access to cheap South American ore.

In the City, Corus shares stood 2.25p higher at 53.75p in morning trade on Friday.