The Corus plant in Port Talbot is to become a centre of excellence

There was a huge sigh of relief in Port Talbot and Llanelli on Tuesday as both towns escaped the latest jobs cuts by steelmaker Corus.

The move is seen as a big vote of confidence in the towns by the company, which is shedding 1,150 jobs in its latest round of cuts, mainly at its plant near Rotherham.

Production at Port Talbot is to be increased by around 25% making it one of the main steel producing centres in the country.

Around 35 extra jobs will be created at the plant, which employs 3,000 people directly and a further 5,500 workers through contractors.

The workforce has gone through some traumatic experiences but they have still been able to produce the best quality steel in the world. Neath Port Talbot council leader Noel Cowley

Corus' tinplate works at Trostre, Llanelli, which employs 990, will be unaffected by the changes but 107 jobs are likely to go at Llanwern near Newport.

President of the West Wales Chamber of Commerce, John Loftus, said it was a day of mixed emotions.

"I think first of all it's a very sad day for all those in other parts of the country that are losing their jobs," he said.

Explosion

"The affect upon their families cannot be understated and it's not the time to be crowing about any success that we have had in our area.

"However, we are delighted with the announcement concerning Port Talbot and the additional jobs are to be welcomed, as is the concentration of the flat products and, of course, the intention to make it the number one steel producer for the UK.

"The Margam and Port Talbot area, as well as a large part of the hinterland, are very depended on the jobs there.

"Any affect on the jobs there is bound to have an affect on the rest of the community."

Corus says, subject to its financing proposals, its plan to increase the production of steel slabs at Port Talbot by 25% to 4.7 million tonnes a year will make the plant self sufficient.

The new blast furnace built which was opened earlier this year

It marks a change in fortune for the workforce which was hit by the death of three colleagues during an explosion at a blast furnace in November 2001.

It is the replacement furnace, opened early this year, which will be the focus of the increase in output.

Leader of Neath Port Talbot Council, Noel Crowley, said: "It is bad news for the UK as a whole but this is wonderful news for us.

"The workforce in terms of steel have gone through some traumatic experiences as far as uncertainty about their jobs is concerned.

"But they have still been able to work under these conditions and produce the best quality steel in the world.

International map

"I'm glad that the workforce can see some long term security at last."

He said he hoped the new jobs created in Port Talbot would be offered to those losing their positions elsewhere in the company.

A spokesman for Corus said those at Llanwern may be offered posts in west Wales.

"It's going to put Port Talbot on the international map and make it a world class player, able to compete with the best," said the spokesman.

Carmarthenshire's cabinet member for regeneration Huw John welcomed the fact Trostre would be unaffected.

"This is good news for Trostre as it has been a difficult time for the workforce recently," he said.