STEELMAKING in Wales is hanging by a "gossamer thread" in the wake of the explosion at the Port Talbot works, a leading South Wales economist claims.

Corus could rethink its plans for South Wales in the wake of the blast furnace explosion and end steel production, says Professor Garel Rhys (pictured), of the Cardiff Business School. Corus says it has no plans to end steel production at Port Talbot after axing steelmaking at Newport's Llanwern works with the loss of 1,400 jobs.

Ironically, if the disastrous explosion at Port Talbot, which knocked out one of the two furnaces at the works, had happened a few months earlier a lifeline could have been thrown to the Gwent plant's heavy end.

Now, Prof Rhys says, the whole future of steelmaking - as opposed to steel rolling and finishing which continues at Llanwern - is in the balance in Wales.

He said: "The fact that the blast furnaces have gone at Llanwern and with only one in operation at Port Talbot means that actual steelmaking in Wales is hanging by a gossamer thread.

"We have to look at things very, very carefully over the next 18 months if there is going to be over production in steel.

"Corus may say: 'We want to stay in Wales but we can't justify the investment' and it could well signal the end of steelmaking in Wales.

"It could happen and that would be very serious indeed as this would effect a whole swathe of people and there aren't the jobs available that would pay the same amount as those at Corus."

Prof Rhys, speaking during a break at the Auto Conference 2001 Wales staged at the Celtic Manor Resort, called on the WDA and the National Assembly to look at that situation now to act proactively to pre-empt any decision taken by the Anglo Dutch metals giant.