UNION leaders are seeking urgent talks with steel giant Corus over the future of East Lancashire jobs after a company executive refused to rule out British closures to reduce the impact of the strong pound.

Fokko van Duyne, joint chief executive of the firm which employs 100 at its Guide site, told a Dutch financial newspaper: "If the pound stays at current levels, we will be forced to take steps. These will become clear over the course of the year."

Mr van Duyne would not rule out closing some of the group's British activities as a possible option.

A spokesman for Corus, formed last year through a merger between British Steel and Dutch firm Hoogovens, said there were no plans to close any UK plants. The Iron and Steel Trades Confederation wants talks.

Michael Leahy, general secretary of the Iron and Steel Trades Confederation said: "We take these words very seriously, especially as we were given guarantees of no plant closures at the time of the merger. We will be seeking urgent talks with the company to clarify the situation."

Corus, which employs around 34,000 workers across the UK, reported a slump in profits at British Steel and Hoogovens last month.

The figures, the last to be reported separately by the companies, showed falling prices had put a squeeze on steel sales and profits.

British Steel suffered a further strain from the high value of the pound hampering its export business.

It made a pre-tax loss of £167million in the six months to October 2, compared to a profit of £108million in the same period in 1998.

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