Corus to axe 400 jobs after 'decline in demand'

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Steel giant Corus has announced plans to cut 400 posts from its distribution business.

The proposed job losses will be spread across the UK, including 100 in the West Midlands, almost 100 in Shotton, North Wales, 50 in south Wales and 50 in Leeds.

The company said that since the start of the year, its distribution business had been operating in a "volatile and fluctuating" market.

It said: "The impact and continuation of the global economic downturn is having a major effect on steel customers in the construction and plant and machinery markets. Since September, the business has seen a significant decline in demand.

"As a result, Corus Distribution has introduced a series of actions to reduce expenditure on transport, consumables, energy and other discretionary spending. However, these actions alone will not be sufficient to offset the decline in the market."

Corus said it would start an immediate consultation with workers and will try to achieve the job losses through voluntary redundancy.

The distribution side of the business employs 2,400 workers at 36 sites in the UK and Ireland. The proposed reductions will be spread throughout the business.