AN urgent attempt is being made to throw steel workers and their suppliers a lifeline should Corus announce further production cut-backs on Teesside.

The Anglo-Dutch conglomerate axed more than 800 jobs on Teesside last year. Compulsory redundancy notices have been issued and there are fears of wholesale closures.

A task group set up to tackle the steel job losses on Teesside is concerned for the thousands of people working for suppliers, dependent on Corus. A study carried out in 1994 found nearly 600 firms supplying services and materials to the then British Steel, and employing 6,400 people.

With a possible announcement expected from Corus next month, Redcar and Cleveland Borough councillors have commissioned a £50,000 study, paid for by the Department of Trade and Industry.

The research work will be given to Durham University, author of the 1994 research, to 'examine the implications for the local supply chain from the potential changes currently taking place.'

A report before councillors on Tuesday said: "The number of suppliers has reduced since 1994, but the impact of any closures would still undoubtedly be very significant."

It added: "The aim of the study is to deliver, by the end of March, a succinct and comprehensive assessment of the outlook for the steel industry on Teesside."

It will also report on how suppliers who have lost business since 1994 have adapted.

Coun Dave Walsh, leader of the council, said: "We need to know what the impact of any local job losses will be, not only in direct terms, but also in terms of how they could affect the many local firms who supply Corus."