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Steel firm Corus cuts 3,500 jobs Steel firm Corus cuts 3,500 jobs
(20 minutes later)
Steelmaker Corus has confirmed that it is cutting 3,500 jobs worldwide, including 2,500 in the UK. Steelmaker Corus has confirmed that it is cutting 3,500 jobs worldwide, including about 2,500 in the UK.
The announcement comes after Corus, like all steel firms, has seen a substantial fall in demand.The announcement comes after Corus, like all steel firms, has seen a substantial fall in demand.
Corus, a subsidiary of India's Tata Steel, currently employs 24,000 people in the UK and 42,000 worldwide.Corus, a subsidiary of India's Tata Steel, currently employs 24,000 people in the UK and 42,000 worldwide.
It said it would be "mothballing" a facility at Llanwern near Newport, south Wales, and was trying to sell a majority stake in its Teesside site.It said it would be "mothballing" a facility at Llanwern near Newport, south Wales, and was trying to sell a majority stake in its Teesside site.
Corus said that 600 jobs would go at Llanwern, plus an additional 1,000 to 1,200 across the firm's other Welsh operations, including its main steelworkers at Port Talbot.
A further 1,400 jobs will go at other UK sites, including 713 in Rotherham and 93 in Scunthorpe.
'Carefully considered''Carefully considered'
Corus said it would "make every effort to achieve the job losses through voluntary redundancies".Corus said it would "make every effort to achieve the job losses through voluntary redundancies".
This is a body blow for UK manufacturing John Wilson, GMB union Corus profileThis is a body blow for UK manufacturing John Wilson, GMB union Corus profile
"The structural changes we are proposing today have been carefully considered," said Corus chief executive Philippe Varin."The structural changes we are proposing today have been carefully considered," said Corus chief executive Philippe Varin.
"They are essential for the future of the business.""They are essential for the future of the business."
Corus workers were told about the job cuts this morning.Corus workers were told about the job cuts this morning.
The firm said the restructuring work would help it improve annual profits by more than £200m.The firm said the restructuring work would help it improve annual profits by more than £200m.
"This is a body blow for UK manufacturing," said John Wilson, senior officer of the GMB union."This is a body blow for UK manufacturing," said John Wilson, senior officer of the GMB union.
About 600 jobs are to go at the Llanwern site. Newport West MP Paul Flynn said the decision to mothball the Llanwern site was "a bitter blow for the workers and their families".
"This is a bitter blow for the workers and their families," said Newport West MP Paul Flynn.
"There is virtually no alternative for blue-collar workers with skills from the steel industry. It is going to be an extremely difficult period.""There is virtually no alternative for blue-collar workers with skills from the steel industry. It is going to be an extremely difficult period."
Slump in demandSlump in demand
Steelmakers around the world have been hit by falling demand from carmakers, shipbuilders, construction and heavy engineering sectors, which, in turn, have seen demand for their products drop.Steelmakers around the world have been hit by falling demand from carmakers, shipbuilders, construction and heavy engineering sectors, which, in turn, have seen demand for their products drop.
CORUS JOB CUTS 600 at Llanwern, near NewportFurther 1,000 to 1,200 across other Wales facilitiesAdditional 1,400 at other UK sites, including 713 in Rotherham and 93 in Scunthorpe.
A 40% fall in global demand for steel from its peak of last year caused Corus's order book to drop by more than a third.A 40% fall in global demand for steel from its peak of last year caused Corus's order book to drop by more than a third.
And steel prices have fallen by half since last September.And steel prices have fallen by half since last September.
Corus was formed in 1999 through the merger of British Steel and Koninklijke Hoogovens. In 2007, it became a subsidiary of Tata Steel.Corus was formed in 1999 through the merger of British Steel and Koninklijke Hoogovens. In 2007, it became a subsidiary of Tata Steel.
The company says it is Europe's second-largest steelmaker, producing 20 million tonnes of crude steel every year.The company says it is Europe's second-largest steelmaker, producing 20 million tonnes of crude steel every year.
Its annual revenues are about £12bn ($16.3bn).Its annual revenues are about £12bn ($16.3bn).
Government aid?Government aid?
Corus has requested financial help from the UK government for a rolling programme to provide new skills to its entire workforce.Corus has requested financial help from the UK government for a rolling programme to provide new skills to its entire workforce.
"It is essential that the UK government offers this industry the same support being offered to the banking sector because, just like banks, steel is the bedrock of our economy," added Mr Wilson."It is essential that the UK government offers this industry the same support being offered to the banking sector because, just like banks, steel is the bedrock of our economy," added Mr Wilson.
Derek Simpson, joint leader of Unite, said his union would not accept any compulsory redundancies.Derek Simpson, joint leader of Unite, said his union would not accept any compulsory redundancies.
"We understand that Corus do face difficulties, but before this recession, Corus had been making extremely healthy profits," he said."We understand that Corus do face difficulties, but before this recession, Corus had been making extremely healthy profits," he said.
"Our members have supported Corus through good times and bad and now expect Corus to support them."
Are you a Corus employee? Are you going to be affected by the job cuts? Send us your comments using the form below.
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"Our members have supported Corus through good times and bad and now expect Corus to support them."
Are you a Corus employee? Are you going to be affected by the job cuts? Send us your comments using the form below. Name