Apr 30 2003
Following a UK asset review, Corus have decided to restructure their UK steel business to try and stem the loss making trend. The current round of restructuring is aimed at tailoring their business for local demand.
Thus, they will be concentrating steelmaking at three key sites:
- Flat products will be concentrated at Port Talbot in South Wales
- Long products will be primarily produced in Scunthorpe in North Lincolnshire
- Engineering steels will be made at Rotherham in South Yorkshire
This restructuring means that steel will not be required from their Teeside plant for internal demand. Corus will look to turning this plant into a slab and bloom plant for export purposes to try and avoid its closure.
With steel production and primary rolling of engineering steels taking place at Rotherham, the steelmaking and hot rolling facilities at Stocksbridge in South Yorkshire will be eventually be closed. However, this site will remain in operation to supply aerospace steels and finishing of engineering billets and rounds.
The finishing facilities at Tipton in the West Midlands will also be relocated to Rotherham.
As a result of the restucturing and closures, it is expected that 1150 jobs will be lost. Costs of the current round of restructuring are not expected to exceed £250 million.
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