Corus Cutting Steel Production as European Demand Slackens

In order to align its production levels with demand in the European market, Tata Steel subsidiary Corus announced in October plans to reduce its third quarter (October to December 2008) production by one million tonnes of crude steel, the equivalent of 20 per cent of its output. The company has now decided to extend the production cuts beyond December. Corus says it expects to produce about 30 per cent less crude steel than planned during the two quarters to the end of March 2009.

To meet this planned reduction Corus, currently Europe’s second largest steel producer, will temporarily idle one blast furnace at each of its IJmuiden (Belgium) Port Talbot and Scunthorpe facilities, the last of which manufactures steel rod from which tyre cord is produced. The company will also adjust output levels on its downstream production units to suit market conditions in respective regions and end-use sectors.

“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.”