THE steelworks on Teesside is favourite to be axed by Corus as part of a radical revamp of its UK business, it was claimed over the weekend.

Newspaper reports said that the Redcar plant, which employs 3,000 people, has been earmarked for closure ahead of other vulnerable plants at Port Talbot, South Wales, and Scunthorpe.

Last week, Corus chief executive Tony Pedder resigned after reporting a fourth annual loss of £458m, following an abandoned merger and the failed sale of aluminium assets.

Corus has refused to put a number on the potential job losses, but chairman Brian Moffat is reported to have said the planned restructuring would not involve as many cuts as last year's revamp of operations, which led to 6,000 workers going.

A spokesman said: "The company has given no indication of job numbers, or the size and impact of any capacity cuts at all."

Cutting 4,000 jobs would save Corus about £120m a year. Any fresh job cuts would come on top of the 10,000 jobs shed by the steel maker during the past two years .

The fate of the Teesside works will be decided over the next few weeks.

Members of Redcar and Cleveland Council's Save Our Steel Campaign stood on Redcar High Street on Saturday handing leaflets to passing shoppers, appealing for public support.

They were joined by MP Vera Baird and MEP Stephen Hughes.

Councillor George Dunning, deputy leader of the council, said: "Many people are angry, confused, and just generally do not know if they are coming or going. Although all of them are well aware of the severity of the affect of the plant's closure on the area."

Council leader Dave Walsh said: "It is important to show the concerns of the local community have been reflected."