UPDATE 1-Corus extends steel production cuts beyond Dec

(Updates with CEO's comments, background, details)

LONDON Nov 7 (Reuters) - Europe's second largest steelmaker Corus said on Friday that it decided to extend the production cuts it announced last month beyond December. The company, owned by India's Tata Steel (TISC.BO) in October announced plans to reduce third quarter production by 1 million tonnes of crude steel, equivalent to 20 percent of its output.

"The company expects to produce about 30 percent less crude steel than planned during the two quarters to the end of March 2009," it said in a statement.

As the financial crisis in the global markets began to tear into the real economy, steelmakers across the globe were forced to cut production sharply to match weaker demand.

Weak end-user demand and tight credit markets restricting the availability of financing for construction projects have led to a collapse in steel prices since July.

Corus said it will temporarily idle one blast furnace at each of its Scunthorpe, IJmuiden and Port Talbot works and will also adjust output levels on its downstream production units to suit market conditions.

"The current slowdown requires us to adapt our operations to the changing environment with maximum speed," said Corus CEO Philippe Varin.

"We are adopting proactive and responsible measures in the areas of production and costs to optimise our results. Meanwhile, our strategy for long-term growth remains unchanged." For a chronology of production cutbacks by major steel companies click on [ID:nL5450584]

(Reporting by Humeyra Pamuk, editing by Editing by Peter Blackburn)