EIGHTEEN employees face the axe after steel giant Corus announced it was closing its Blackburn office as part of a reorganisation of the business.

The company is looking to shed 3,500 members of its 42,000-strong workforce as it battles against a reduction in demand brought on by the global economic crisis. Around 2,500 jobs will be lost in the UK.

The Blackburn workforce is based at the company’s service centre in Walker Business Park, Guide.

A Corus spokesman said: “With the impact of the global financial crisis and the resulting downturn and loss of confidence in the market continuing to hit steel customers in the automotive, construction and plant and machinery markets, Corus Distribution is today announcing proposals to further reorganise its business.

“Despite numerous cost saving initiatives already introduced – cutting transport and energy expenditure, the removal of overtime and temporary labour, and reducing stock levels – the effects of the recession has been deeper and more profound than anticipated.

“The company is proposing the transfer of business and some jobs from a number of locations to more centralised operations within the group resulting in the proposed closure of three sites at Bellshill in Scotland, Blackburn and Stourton near Leeds.”

Union officials said the announcement was a crippling blow to the manufacturing sector.

John Wilson, GMB senior officer, said: “This is a body blow for UK manufacturing. It is essential that the UK Government offer this industry the same support as offered to the banking sector.”

In 1989 Jack Walker sold his Walker Steel business to British Steel for a record £330million.

Corus was formed in 1999 through the merger of British Steel and and Dutch firm Koninklijke Hoogovens.

Corus is Europe's second largest steel producer with annual revenues of more than £12 billion.