Mar 12 2003
Since the reports yesterday that Corus was attempting to fast track the sale of its aluminium business to Pechiney there have been significant developments, both on this deal and relating to their carbon steel business.
While it was agreed in principle that Corus would sell its aluminium business to Pechiney in October of last year, further consultation and negotiation was required before a definitive sale agreement would be reached. To this end the Supervisory board of Corus Nederland BV has rejected the recommendation of the Management Board to proceed with the sale. The Management Board feels that the Supervisory Board has acted irresponsibly and unreasonably while trying to come to terms and will fight the Supervisory Board’s decision in court. A decision is expected on March 13.
Corus’ woes continue with poor operating performances in the last year or so. They are currently assessing their steel operations to try and reduce losses, with capacity reductions and possible plant closures imminent. While the final decision will depend on the outcome of the aluminium business sale, things do not look good for the Teeside site, which is reported to be the least productive.
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