Corus To Cut Crude Steel Production

Corus To Cut Crude Steel Production Corus would cut crude steel production by 20 per cent following fears of softening in the demand of steel. Corus is UK subsidiary of Tata Steel. It would reduce steel production by one million tonnes over three years. However, it would not reduce production outside Europe.

The company expects decline in the demand of steel following global financial crisis. The CEO of Corus, Mr Philippe Varin said that the company is taking various steps to ensure its sound financial health. The company is bearing production cost of around USD 850 per tonne and selling it with a low margin of only USD 900 per tonne.

Meanwhile, Corus signed a contract with Companhia Vale do Rio Doce (Vale) for iron ore. The company would get around 63 million tonnes of iron ore over the next five years. The agreement would compliment the raw materials needs of TATA Steel for its European operations. State-owned Minerals and Metals Trading Company is also expected to form a joint venture with TATA Steel for mining the iron ore.