Corus has announced it would restart production at its Llanwern works in Wales, encouraged by a rise in the price of steel as the global economic downturn eases.

The company, Europe’s second-biggest steel concern, said it would restart production at the hot rolling mill, which was shut down in January due to lack of demand.

Corus, owned by Indian firm Tata Steel, announced in June that it would shed more than 2,000 jobs due to the economic crisis, but due to world steel prices and production rises it is able to restart productions at its factory.