TROUBLED steel giant Corus is facing fresh turmoil after two of its joint chief executives resigned last night and left the company immediately.

The revelations come as the group is expected to make the first compulsory redundancies among its Teesside workers at its Lackenby works.

The resignations follow a difficult year for the former British Steel company, which has seen thousands of job cuts, including 760 at the group's operations at Lackenby, Redcar and the Grangetown Research Centre.

Chairman Sir Brian Moffat will take on the role of chief executive until a new appointment is made.

But he warned those employed by the group on Teesside that the group was set for further restructuring in the UK.

He said that while Corus's aluminium and stainless steel businesses were making good progress, its carbon steel business continued to struggle, particularly in the UK where market demand remained relatively weak.

And while demand in the rest of Europe was strong, oversupply was beginning to cause a weakening in prices throughout the EU.

"In the light of this developing situation, the market outlook, and the continuing strength of sterling against the euro, it is inevitable that further major restructuring will have to take place in the UK," he said.

He added that he expected to make a further announcement about restructuring early in the New Year.