Corus Group Plc is one of the world's largest metal producers

Rail track production is being transferred from the Workington plant to Scunthorpe, which is to undergo a �130m restructuring programme.

Some 256 jobs will be axed in Workington and 161 cuts are expected in Scunthorpe.

Bosses claim rail industry demands for longer sections of track can be better met at Scunthorpe.

Longer rail track

The Cumbria rail facility will close at the end of next year after an 18-month handover process to Scunthorpe.

The process engineering business at Workington, which employs 300 workers, will not be affected by the changes, Corus has confirmed.

A new mill is to be installed in Scunthorpe which would enable the plant to produce 120-metre sections of track opposed to the 40-metre rails manufactured at Workington.

A steel casting machine will replace existing equipment and an on-site service centre will be built to improve customer service.

Andrew Page, managing director of Corus Construction & Industrial said: "In overall terms this is excellent for the Scunthorpe area.

"This represents the largest investment programme at the Scunthorpe site for over 30 years and will significantly enhance our service to customers in terms of quality, reliability and an improved product range."

'Working party'

Michael Leahy, general secretary of steelworkers' union Community said: "It is obviously disappointing news for our members at Workington, who will see Corus's rail production transferred to Scunthorpe, after over 100 years of production in the town.

"Corus and the trade unions have agreed to set up a joint working party to explore possible alternative options for the Workington plant.

"Community is committed to supporting our members in Workington, as well as those of the 161 who may become redundant in Scunthorpe."

In April last year more than 200 jobs were axed at the Scunthorpe factory as part of a �32m restructuring and profit-boosting move.