Corus this week dismissed reports that it is thinking about selling its Teesside plant to foreign steelmakers.

Managers at the troubled Redcar plant were said to be considering offers from LNM, a group run by Indian businessman Lakshmi Mittal and CSN, Brazil's biggest producer.

Reports in Wednesday's Financial Times said the move would make it easier for the Anglo-Dutch firm to secure nearly £200m in loans from banks.

Corus dismissed the reports as 'rumour and speculation.'

Last month the company said the Redcar plant would not be sold but encouraged to find its own market for slab steel.

"Our plans have not changed and we firmly believe those plans revealed on April 29 are the best way forward," said a Corus spokesman. "With the right competitiveness Teesside Cast Products can become a cash generative slab and bloom producer feeding the international market.

"At our latest estimate the market was worth 20-30 million tonnes with potential for growth.

"There is no reason why we can't be successful in this area."

Middlesbrough South and East Cleveland MP Ashok Kumar said Corus should be given the benefit of the doubt because it had given evidence to a Government select committee.

"They have confirmed their own position and I accept their word," said Dr Kumar. "The only way we can progress is if they are honest and transparent in their decisions."

Iron and Steel Trades Confederation spokesman Tony Poynter said the mixed messages would only confuse the 2,900 employees who are facing an uncertain future.

He said: "We are just putting plans together to open discussions early in June over the plan they put forward at the annual general meeting, but this puts doubt on that."

Chief executive of Tees Valley Development Company Neil Hetherington said that securing Teesside's ongoing capacity for steel production was the most important thing to the workers.

"Nobody ever said that the future had to be a Corus-owned solution - but of course there are still many unanswered questions, not least the terms and conditions of the current workforce," said Mr Hetherington.

"The key issue is to maintain the long-term viability of steel producing activity in the Tees Valley and at the end of the day this could turn out to be a better solution than the one that was proposed last month."