A £20m spending plan has given Teesside's steel industry a much-needed shot in the arm.

The announcement this week by Corus, formerly British Steel, came just a day after the company announced losses of £113m over the last six months.

News of the £20m cash injection, which will be spent on modernisation at the Redcar blast furnace, was welcomed by union bosses.

Divisional officer for the Iron and Steel Trades Confederation (ISTC), Mick Adams, said: "The Corus results were disappointing but not wholly unexpected.

"However the Teesside plants are very efficient and very strong. They could have left the blast furnace to fall to pieces but this demonstrates a commitment to Teesside."

The news comes after Corus announced 1,430 job losses earlier this month, including many at the British Steel Research Centre in Grangetown. The company employs between 5,000 and 6,000 people on Teesside.

Iron and Steel Trades Confederation (ISTC) general secretary, Michael Leahy, met with Secretary of State for Trade and Industry, Stephen Byers recently to express the union's concern at the job losses.

Mr Leahy said: "I would urge Corus to think of the industry in the long-term, and rather than reacting to short-term problems."

Mr Byers told Mr Leahy that he expected to meet up with Corus management within the next week to hear what their plans were for the future of Britain's steel industry.