Tyre Cord Business Thrives

According to market research conducted by steel manufacturer Corus, the automotive industry is demanding premium quality steel at an unprecedented rate. Much of this demand comes from the Far East and Central and Eastern Europe, where tyre production is increasing at a rapid pace. In China alone, consumption of steel tyre cord has increased by 30 per cent a year since 2001. This year, the market is expected to grow to more than 300,000 tonnes. In response Corus has invested £14 million in rod mill enhancements to boost its ability to produce, handle and distribute these premium steels.

Corus representatives say the shift in demand profile could not have been predicted 10 years ago and point to Bridgestone’s new Chinese tyre cord production facility and Thai tyre factory as examples of this demand. As Corus is an influential global supplier of wire rod for the automotive industry, this growing demand for premium steel has made a significant impact on its business.

Corus reports that it is now concentrating on producing greater volumes of premium-grade wire rod applications such as tyre cord, which require careful attention to detail during rolling, and sensitive handling during storage, despatch and transportation.

The result is the business now sends more steel overseas than ever before, with exports accounting for a record 65 per cent of all rod sales despatched from Corus in the first quarter of 2005.

“Our aim is to work as a global partner with our international customers, not just a UK shipper. We pay great attention to detail in getting our deliveries to customers on time and in excellent condition, and provide full back up support through our regional offices all over the world,” Andrew Speck, rods international sales manager commented.

Company representatives believe it is this commitment that has secured Corus’ success in Far Eastern markets, particularly China. While the country has become a net exporter of steel in recent years, it still demands large quantities of premium steel. As a result China is one of Corus’ fastest growing markets. “Our success shows that we are providing a quality of steel that is above anything indigenous steelmakers can supply,” Mr Speck continues, adding: “We are constantly striving to keep the quality of our steels ahead of the competition, and our £14 million investment in the rod mill will give us the tools to do this even more effectively in the future.”