Steel manufacturer slashes workforce at Lackenby in Teesside by almost 20%.
Corus is to shed 98 workers at its steel-making plant in Teesside as it begins a £4.4-million modernisation of the Lackenby site, which employs 517 people. It says the investment will improve efficiency as machines are installed to carry out some of the processes currently done by hand.
The plant manufactures 700,000 tonnes of steel beams and columns a year for the construction industry.
Andrew Page, managing director of Corus Construction & Industrial – formed by a merger of British Steel and Dutch company Hoogoevens in 1999 – said: "Today's announcement to invest in the Teesside Beam Mill is extremely good news for the mill. We will work closely with the trade unions and our employees to mitigate the impact of the job reductions as much as possible."
Details of the job cuts emerged just days after Corus awarded chief executive Philippe Varin a 19% rise, bringing his pay package to £1.43 million last year.
