GWENT'S steel industry is being dealt another blow with the revelation that nearly 100 jobs could be lost at a Newport company.

Union leaders at Alpha-steel in Corporation Road said the firm had indicated it planned to make up to 99 workers redundant.

Steelmaking in the area has declined following the massive job losses at Corus plants in Llanwern and Ebbw Vale, and the closure of the Panteg works in Torfaen in March 2004.

More than 80 people were made redundant at Alpha-steel in 2001 but at the end of 2003 First Minister Rhodri Morgan hailed a planned major investment at the Newport site.

He said together with in-vestments by Corus and other steel firms in South Wales, it was a sign that the industry was "rising like a Phoenix from the ashes".

And in March this year, Mike Leahy, head of the union Community, visited the Iranian-owned works and said he was pleased the company was now making significant investments in new plant and equipment.

"The demand for steel is there and we have been urging all companies - including Corus at Llanwern - to take advantage of it by maintaining or expanding production levels," he said at the time.

Steve McCool, South Wales regional secretary of Community, said: "The company has indicated they are planning up to 99 redundancies."

He said that individuals had not yet been notified as the consultation process was just starting.

Mr McCool said union officials were due to meet company representatives today . "We will be looking for a number of things, such as training initiatives for anybody identified as at risk."

Community represent about 650 blue collar workers, the majority of the workforce.

Mr McCool said the job losses were expected to be across all sections of the business.

Spiros Kopitsis, managing director the Corporation Road plant, refused to comment on the job losses.