Steel giant Corus is planning to lay off nearly 100 staff at a UK beam mill.
The move is part of a £4.4m modernisation drive intended to improve operational efficiency and customer service at the Teesside mill, Corus said.
Money will be directed towards installing machines to carry out processes such as product testing and the straightening of beams which are currently done by hand.
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Corus said consultations have already begun with staff and trade unions about the plan to cut 98 jobs at the Teesside plant.
Details of the cuts emerged just days after Corus rewarded its chief executive with a 19% rise in his pay package to £1.43m last year.
