The Hindu Business Line : Corus to cut crude steel output over the next 3 months

Mumbai, Oct. 16 Tata Steel Group’s UK subsidiary Corus has decided to cut crude steel production by one million tonnes – a 20 per cent reduction – over the next three months.

The move was taken to mitigate the effects of a softening near-term steel demand outlook and align production with demand that has affected by the consequences of the global financial crisis.

“We are taking appropriate steps to optimise our operations and protect our sound financial position over the next few months,” said Mr Philippe Varin, CEO of Corus.

There is, however, no change in the current production of the operations of Tata Steel Group outside Europe, a release from Tata Steel said.

Tie-up for iron ore

Meanwhile Corus has entered into a contract with Companhia Vale do Rio Doce (Vale) by which Vale has agreed to supply Corus about 63 million tonnes of iron ore over the next five years, beginning 2009.

Mr Varin said the contract complements the raw materials strategy for Tata Steel Group’s European operations of combining external sources with future captive supplies.

State-owned Minerals and Metals Trading Company recently said it was entering into an alliance with the Tata Steel for mining activities and that a joint venture company would be set up with MMTC holding 26 per cent stake.

The MMTC Chairman and Managing Director, Mr Sanjiv Batra, was quoted as saying that Tata Steel would hold the majority stake. However, no details of investments to be made were available.

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