DUTCH union workers could hold the future of steel-making on Teesside in their hands.

Corus is being held to ransom over the sale of its aluminium operations because workers in the Netherlands are opposed to the revenue coming to the UK.

The Anglo-Dutch company, formed from the merger of British Steel and Hoogovens in 1999, needs to find £1.2bn to clear debts - £0.5bn of which would be wiped out by selling the aluminium production arm.

But works councils in Holland are trying to exercise a veto on the sale because they want the money to be invested in their works.

Corus last night issued a statement to the London Stock Exchange saying it was determined to push through the £543m deal with French firm Pechiney.

It said: "Management remains fully committed to the sale of the group's aluminium assets."

Corus, which has plants in Redcar, Lackenby, Stockton and Hartlepool, has called in management consultants McKinsey.

That move sent out ripples of speculation about the company's plans, including the possibility of job cuts to counteract the debt.

In February 2001, Corus cut 6,000 UK jobs - 1,100 on Teesside - and so would be unlikely to further reduce its workforce.

Union leaders last night strenuously denied the possibility of extra redundancies.

But city analysts are bracing themselves for a bad trading statement when Corus reports to the City on March 13.

One expert said losses could be in the region of £400m.

Henry Cooke, a journalist at Steel Business Briefing, said: "They may well come under pressure to be seen to do something to recover those losses. That may well involve some further UK cutbacks.

"Teesside is the most likely one to suffer if that does happen."

Corus's reliance on the aluminium sale was brought about by its decision early last year to streamline from multi-metal production to concentrate on carbon steel products.

Chris Paul, analyst at financial institution Brewin Dolphin, said: "Corus is dying under a mountain of debt, if they do not sell the aluminium operations, things are going to get sticky.

"At the moment, they are protected because interest rates are so low, but if there is a reversal and rates go up, Corus is going to be squealing like a stuck pig."

However, another industry expert suggested bringing in McKinsey was "window dressing" to give banks the impression Corus is keen to deal with its debt mountain.

Senior economics lecturer Jonathan Aylen said: "They have to find money from somewhere, it is as simple as that. But bringing in McKinsey might be window dressing to impress the banks.