The company said it had signed a new 1.2 billion euro (�837m) banking facility which will run from the end of January next year until 30 June 2006.

The company, which has been forced to axe thousands of jobs amid a sharp downturn in world steel demand, said the money would help finance its working capital requirements.

Corus added that its performance had improved during the first half of the year, helped by a slight increase in average steel prices in the European Union.

It said the increase had helped put it on track to cut its first-half losses to about �41m, down from �141m during the same period last year.

Corus was more cautious in its forecasts for the second half of the year, saying market conditions in Europe remained "challenging and uncertain."

But it said it expected a boost from a recovery in the value of the euro against the pound.