INDIAN-owned steelmaker Corus says it will be 'mothballing' the Llanwern facility near Newport with the loss of 600 jobs, many from the Caldicot and Chepstow areas.

This would be part of a total 1,100 cuts across the firm's Welsh operations.

Jocelyn Davies, Plaid AM For South Wales, East, said: "This announcement is unfortunately yet more bad news for Gwent's workforce.  Corus has been an extremely important local employer for many years.

"A cut of so many jobs will have a massive effect on the whole area. Llanwern has been a major employer, not only for Newport but for many valley communities for an awful long time.

"Our one ray of hope is that the site is being mothballed, not shut. We an only hope that when this disastrous current economic climate eases the Welsh Assembly Government can work with the company so see it reopen."