29/04/2003

1,150 jobs under threat at Corus

Up to 1,150 jobs are under threat in England after steelmaker Corus announced measures to "restore market confidence" in the troubled company.

As part of the rationalisation process, the steelmaking and hot rolling process at Stocksbridge in south Yorkshire will be closed "in due course". Steelmaking in the UK will now be concentrated on three sites – Port Talbot in south Wales, Scunthorpe in north Lincolnshire and Rotherham in south Yorkshire. The finishing facilities at Tipton in the west Midlands will also be relocated to Rotherham.

At the group's AGM today, Chairman Sir Brian Moffat said that the proposals were necessary as concerns continued over the "erosion of the market value of Corus", and the continuing loss-making situation and its medium term refinancing.

It was also announced today that Corus's 2,200 strong workforce in Teesside will no longer produce steel for the UK market. However, in order to avoid Teesside's closure, the group says it will "endeavour to refocus" the site to become a "cash generative" slab and bloom producer for international markets.

As a result of the realignment, Corus will reduce its output to 10.5 million tonnes a year – largely focused on satisfying UK market demand. The board anticipates that the capital expenditure and restructuring cash costs associated with the proposals will not exceed £250 million.

The job losses relating to these initiatives are in addition to those contained in the 2001 restructuring programme and are due to be completed in 2004.

(GMcG)

Related UK National News Stories
Click here for the latest headlines.

20 October 2006
Tata agree £4.3bn deal with Corus
Indian group Tata Steel has confirmed it has agreed a £4.3bn takeover from Anglo-Dutch steel company Corus. Tata said the acquisition is 'strategically compelling' and would create the fifth largest steel producer with pro forma crude steel output of 23.5 mln tonnes in 2005.
04 November 2015
300 Jobs To Be Cut At JCB
Almost 300 jobs are to be axed at JCB, it has been announced. In September, the digger manufacturer revealed 400 jobs would have to go across the UK due to a slowdown in the world market. The firm has begun discussions with GMB union over the proposed redundancies.
11 January 2008
UK Jobs To Go As Rolls-Royce Trims Costs
Prestigious engine manufacturer, Rolls-Royce, is to axe up to 2,300 jobs, some of which will be in its UK operation. The measure is being taken across the company's European, UK and US bases in an effort to trim costs in response to a very competitive market and global financial 'belt-tightening'.
14 September 2006
Aviva restructuring to result in 4,000 UK jobs cut
A major restructuring by the parent company of insurance giant Norwich Union will see 4,000 redundancies across the UK. The UK's largest insurance company, Aviva, said it was seeking to make annual cost savings of around £250 million by 2008. Aviva said that about half of the cuts would come through compulsory redundancies.
17 January 2014
Miliband Speech Promises Reform Of UK Banking Market
Labour leader Ed Miliband has criticised the UK's five largest banks, saying that they should be made to surrender a "significant" number of branches.