STEEL giant Corus has denied Dutch newspaper reports suggesting that the firm's UK operations could see thousands more job losses.

The Anglo-Dutch company says Llanwern steelworks will see no more mammoth job cuts in the foreseeable future, despite the industry's continuing problems.

It denied Dutch newspaper reports which suggested more UK jobs could be put at risk as a result of steel-subsidised East European countries joining the European Union. But it said Corus chief executive Tony Pedder had written to industry secretary Patricia Hewitt about the problem.

Mr Pedder says the former Communist states - Poland, the Czech Republic, Hungary, Slovakia, Slovenia and Latvia - must toe the European line. A deal for EU enlargement was due to go before the leaders of the current EU countries today and should be finalised in December.

Corus, like other steel producers, has streamlined its operations to counter the problem of cheap imports and world over-production of steel.

America responded by erecting trade barriers, Corus by sacking thousands of workers and decimating plants. It made over 1,500 redundant at Llanwern and 850 at Ebbw Vale, where it shut the tinplate plant.

Corus says the new EU members could increase Union steel output from 158 million to 180 million tons. Exports from the four main steelmakers due to join in 2004 is 12 million tons, of which 6.4 million is intended for the EU. Exports from the EU to those four is 3.5 million tons, a trade deficit of 3 million.

Mr Pedder told Ms Hewitt that EU governments had to insist on prior approval of restructuring by the new members as well as an end to subsidies.

However, a Corus spokesman told the Argus that reports of a threat to thousands of UK Corus jobs was "baloney", as were suggestions that the proceeds of the sale of Corus aluminium smelters would be invested in South America, where the company is buying a Brazilian steel company.

"We have done our restructuring and while we cannot put our hands on our hearts and say there will be no more changes, we have drawn the line in the sand," a spokesman said.