THE Scunthorpe Corus steelworks is to revert to a three blast-furnace operation for the first time since November 2008.

Site director Sean Lyons said the re-lighting of the Queen Bess furnace on Monday would allow the steelworks to better service its current order.

But Mr Lyons warned the town's 4,000 Corus employees, steel prices were still a long way below peak levels.

He said: "The restart of the third blast-furnace is positive news as we are bringing Queen Bess back online so we can improve customer service.

"But the market outlook for 2010/11 remain extremely challenging for the business. Prices for finished steel products are still below sustainable levels.

"We have said throughout the last 18 months we will match production levels to demand and the restarting of Queen Bess will allow us to continue to do that.

"It should not be assumed however that we will return to full production soon.

"Though we've seen more positive trading conditions in some of the markets we supply such as automotive we still see difficult trading conditions in others, including the construction sector which is our most important market.

"This is all about maintaining our focus on safety, customer service and driving down our operating costs."

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