Steelworkers told to stay at home

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About 650 steelworkers at Corus in Llanelli have been told not to turn up for work for the first two weeks in April because of a slowdown in orders.

The company said it was temporarily halting tinplate production at Trostre.

It said shop floor staff at the plant, which employs 800, would not be needed and with union agreement would receive only half pay for the fortnight.

Corus said it was unconnected with its take-over by Indian firm Tata and did not affect other plants in south Wales.

The Carmarthenshire plant produces steel used to manufacture food and drink cans and other products.

Corus spokesman Robert Dangerfield said: "This is in response to slower than anticipated orders from the start of 2007.

Of course it will make people feel anxious Robert Dangerfield, Corus

"The market for tinplate is quite variable compared to the construction or automotive industries where a lot of steel goes.

"There are vulnerabilities in heavy industry - of course it will make people feel anxious, nevertheless in many respects it's a positive response in the face of a business challenge.

"This is an industry that has had its challenges and conquered them in the past - I think tinplate will have its highs again."

He said many of the administration staff, maintenance crews and management that account for almost a quarter of the workforce would continue to work as normal.

"I should add there is no connection with the acquisition process of Tata who have not acquired us yet," added Mr Dangerfield.

Indian firm Tata Steel is in the process of buying Corus after winning a battle with other steelmakers and offering 608p per share for the company, valuing Corus at £5.75bn ($11.3bn).