STEELMAKER Corus is cutting 78 jobs at a South Wales plant to improve efficiency in the face of fierce international competition.

The jobs will go at the company's tin plate plant, at Trostre, Llanelli, over the coming year.

Corus employs 3,000 people on Teesside, including at Teesside Cast Products, which the steel company is hoping to sell as part of an efficiency drive. Those workers are not affected by yesterday's cutbacks.

Senior managers announced the job cuts to the Welsh plant's 992 workers and said the decision followed a nine-month review.

The plant is part of Corus Packaging Plus, which mainly makes products used in the food and drink industries.

A spokesman said rival firms selling aluminium, paper or plastic alternatives to the company's products were targeting its customers.

The heightened competition comes at a time of rapidly rising steel prices - steel is an integral ingredient in the tin plate making process.

Consultation with employees and discussions with unions have begun on the best way to manage the job cuts.

Most of the losses will be in administration and accounts and are unlikely to have much effect on manufacturing.

Plant manager Stuart Wilkie said: "The job reductions, while regrettable, are necessary and come at the end of a nine-month review of our operation.

"We have to secure the long-term viability of Trostre, both for our workforce and the local community, and this is a key step.

"We must remain competitive in the modern manufacturing environment. The current level of support for our manufacturing operation is far too high."