ANGLO-Dutch steelmaker Corus has been accused of driving a wedge between its Dutch and British operations following the resignation of the managing director of Corus in the Netherlands.

The group, which employs 1,700 people on Teesside, said Peter Jongenburger was resigning from his role.

However, the Central Works Council (CWC) of Corus Nederland (CN) said Mr Jongenburger was being dismissed at the request of the London board of the company.

The CWC, a supervisory board staffed by workers and management, said the move reflected a desire by Corus to tighten its grip on the Dutch part of the business.

Mr Jongenburger has been a managing director at CN since Corus was created five years ago by the merger of Hoogovens and British Steel.

In a statement, the CWC described the decision as incomprehensible, and said the company was in danger of creating internal divisions.

It said: "It has been partly on account of the excellent performance of CN that the continuity of the Corus Group has been assured.

"This step will have major negative consequences for the future relations between the British and Dutch parts of the company."

Earlier this week, the biggest investor in the company, Brandes Investment Partners, reduced its stake in the company by nearly one per cent.

Last week, the long-term future of Corus in Redcar, east Cleveland, was guaranteed by a ten-year deal with a consortium of companies.