FEARS were growing last night that hundreds more North-East steel jobs could be under threat.

Dutch steel industry leaders are demanding job cuts in England as the price for allowing the sell-off of part of Corus's aluminium business.

Corus - formed through the merger of British Steel and Dutch steelmaker Hoogovens - has already axed 6,300 jobs in Britain, including 1,100 on Teesside.

The group originally planned to use cash from selling off its aluminium business to off-set massive debts of £1.2bn.

With the sale expected to raise about £543m, officials were hopeful they could cut the debt mountain by half.

But Leo Berndsen, chairman of Corus's Dutch supervisory board, is reportedly demanding that money from the sale is used to bankroll job creation in Holland.

He also wants to see the money used to finance what he describes as "over-capacity" in the UK - a euphemism for job losses and redundancy payments.

The threat of further cuts has mobilised local MPs.

Middlesbrough South and East Cleveland Labour MP Ashok Kumar said last night: "As a Teesside MP, I represent one of the most important steel-making areas in Britain.

"I would hope that the Corus main board keeps its nerve and decides to act in the strategic interest of the steel industry in the UK and not allow itself to be dictated to by part of the Dutch section of the company.

"The vast majority of the job losses which came with the rationalisation that followed the merger were in the UK and many of them were on Teesside. We cannot take any more.

"I understand that most Corus shareholders approve of the sale of the aluminium businesses on the basis that the Corus main board recommend, and I would urge Tony Pedder, the chief executive of Corus, to follow their lead."

Councillor Dave Walsh, leader of Redcar and Cleveland Borough Council and a former steel worker, said: "Our borough area covers Corus's Redcar/Lackenby complex as well as being the home of the special sections unit at Skinningrove.

"While over the years we have lost many thousands of steel jobs, those plants are still among the most efficient in the world."

He added: "The Corus main board should stand firm."

Hartlepool MP Peter Mandelson said last night: "I will make inquiries with the company to clarify this situation to ensure these moves are not made at the expense of jobs on Teesside."

Tony Poynter, chairman of the multi-union steel committee on Teesside, is confident the proceeds of the aluminium deal with French company Pechiney will be used to reduce the group's debts.

"They are going through a legal process. I am not unduly worried because it's unrealistic. I am fairly sure that reducing the debt will be the outcome."

Corus was unavailable for comment last night.