Philippe Varin, the chief executive of Corus, is threatening to shift the steelmaker's European operations to China unless regulations governing carbon emissions are overhauled.
Mr Varin warned that politicians had to help fund new clean-energy technologies or face the prospect of Corus quitting the UK and Europe.
Corus employs around 25,000 workers in the UK and is in negotiations with unions over pay in an effort to curb large redundancies.
"If we are forced to buy CO2 credits on the market without a system to improve our production process, then we will not produce steel in Europe," said Mr Varin, who is also chairman of the World Steel Association's Climate Change Policy Group. "To cut carbon emissions of steel production, we need breakthrough technology, but this is extremely expensive, costing €200m to €300m to upgrade a one million ton production plant."
Varin, who spoke exclusively to the 'IoS' at the UN Climate Change conference in Poznan, said: "There is no way for us to fund this and pay penalties for our CO2 emissions. This would wipe out all of our profits and put us at a competitive disadvantage with manufacturers in nations which are not subject to carbon caps.
Read the full story at the Independent