Anglo-Dutch steel group Corus announced today the loss of around 3,500 jobs worldwide, with the majority in the United Kingdom, as it restructures to battle a downturn in global steel demand.
Corus said 2,500 jobs would go in the UK, with the remainder to be cut in continental Europe, including 800 at its IJmuiden plant in North Holland.
The group, Europe's second largest steel producer, said it would try to achieve the job losses through voluntary redundancies.
The measures, which are set to boost operating profit by £200 million ($275.7 million) a year, include the proposed sale of a majority stake in its Teesside Cast products plant, and the mothballing of the hot strip mill at Llanwern in Wales.
Corus has been hit hard by the downturn in the automotive and construction industries, which make up around 50 per cent of the demand for its products. It said its order book is currently 30 to 40 per cent lower than this time last year.
The group, owned by India's Tata Steel, already won approval from the Dutch government to cut hours for thousands of Dutch staff for six weeks beginning this month.
Global crude steel production slumped 24.3 per cent year on year in the last quarter of 2008 as major firms cut back on output.
Reuters