Corus accepts Tata offer Corus takeover Q&A

The company, which employs 7,900 in Wales, mostly at Port Talbot, Llanwern and Shotton, said the �4.3bn offer from Tata Steel was "not about job losses."

Chief executive Philippe Varin said it was about "building a global company" although Tata's chairman conceded that savings had been indentified.

Welsh secretary Peter Hain earlier said he was seeking "urgent assurances".

He said the plants' contribution was "vital" to the Welsh economy.

Mr Hain said he would be contacting Tata and Corus executives and the Indian High Commission.

"This take-over could present enormous opportunities for the plants because of direct links to the huge burgeoning Asian steel markets," he said.

"But I will be keeping the situation closely monitored."

Corus currently employs 3,166 people at Port Talbot, 1,800 at Llanwern and 1,000 at Shotton.

It also has processing units at Llanelli and Ammanford.

If approved by Corus shareholders, the deal would create the world's fifth-biggest steel firm.

'Outstanding position'

Asked about job security at a news conference, Ratan Tata, chairman of Tata Group, gave no details of plans but conceded that savings had been identified, including within manufacturing.

It also emerged at the conference that steel cost twice as much to produce in south Wales as in India.

Mr Tata said the aim of the takeover was to "make a stronger single company out of this in the course of time".

Tata pledged to pay �126m into the Corus pension fund as part of the deal

Conservative assembly economic spokesman Alun Cairns said it was "absolutely essential" workers were reassured about their employment prospects, pay and pensions.

"I would have concerns for the industry in Wales if there is a downturn in the market as it is cheaper to manufacture steel in countries like India than it is in Europe."

South Wales West AM Dai Lloyd AM said he was worried about steel slab production moving to cheaper labour markets.

"It is vital that the Labour governments in both Cardiff and Westminster do all in their power to ensure that Corus jobs in Wales are safe," he said.

Corus chief executive Philippe Varin told the BBC that the deal was "not about job losses."

He said: "There will not be any immediate moves because this deal is not about plant relocation. It is about growth."

A spokesman for the company in Wales added: "There is a lot of enthusiasm for what has happened today down here in Wales. This is a business decision and it is all about growth and improvement."

The steel union Community, said it was "urgently seeking talks with the company on a range of issues, in particular its plans for investment in the UK".