May 5 2005
Corus has announced that it will open a new continuous slab caster at its Port Talbot steel works in South Wales, completing a key milestone in the implementation of the Group’s Restoring Success program. The caster increases the plant’s annual steel slab output by twenty-five per cent and gives it the capability to produce nearly 5 million tonnes per annum. Constructed at a capital cost of £79 million, on time and within budget, the investment will significantly improve the competitiveness of Corus’ UK carbon steel assets.
The investment, part of a wider capital program of over £200 million in South Wales was made up of a new two-strand continuous caster, improved secondary steelmaking and increased capacity utilisation at Blast Furnace 5.The aim of Corus’ UK restructuring programme announced in November 2003 is to improve the efficiency of its UK steelmaking businesses in order to reduce costs and generate cash throughout the economic cycle. Crude steel production in the UK will be focused on three sites, instead of five; strip products at Port Talbot, engineering steels at Rotherham and long products at Scunthorpe.
The caster will be opened today by the Rt Hon Rhodri Morgan AM, First Minister at the Welsh Assembly Government in the presence of Jim Leng, Corus’ Chairman and Philippe Varin, the Company’s Chief Executive.
Commenting, Philippe Varin said: “I am pleased that this investment was completed on time and puts us on track to complete our UK investment programme, which will begin to deliver £120 million pa EBITDA benefit in Corus’ UK profitability in the second half of 2005.”
Phil Dryden, Managing Director of Corus Strip Products UK added: “Our strip products division in South Wales now looks completely different to what it did just five years ago. We now have the capability to service both Port Talbot and Llanwern rolling mills from a single steelmaking site. With this new facility in place we aim to further strengthen our efficiency, quality and customer service.”
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