Corus says the �71m investment will allow increased production from the number five blast furnace at its Port Talbot steelworks.

The furnace was completely rebuilt at a cost of �75m after the explosion in which 12 workers were also injured.

The latest investment will be completed by March 2005, and output of steel slabs are expected to be increased by nearly 30%.

Corus has announced the funding as part of the review into its UK assets.

It says the Port Talbot investment represents another important step towards securing a viable steel industry in Wales, which has seen 3,000 jobs go in the last few years.

Dr Mark Carr, Managing Director for Corus Strip Products UK, said it was excellent news for its Welsh operation.

He said it underlined "the high degree of confidence in the business and employees" and would enable the business to become internationally competitive."

The investment will increase the annual production of steel slabs by one million tonnes, to nearly five million tonnes.

Worst accident

The 2001 explosion at the Port Talbot was probably caused by water coming into contact with hot material in the furnace.

The accident at number five furnace at the site on 8 November, 2001 was the worst in the steel industry for 25 years.

It claimed the lives of steelworkers Stephen Galsworthy, who was 25, Andrew Hutin, 20, and Len Radford, 53.