Annex 1
BACKGROUND INFORMATION ON CORUS
MARKETS SUPPLIED
BY CORUS
Estimated share of turnover
Construction 30%
Automotive 16%
Packaging 15%
Mechanical Engineering 14%
Electrical Engineering 4%
Metal Goods 13%
Oil & Gas 2%
Other 6%
Corus has approximately 50% of the UK steel
market and c. 11% of the European (incl UK) steel market.
Turnover
Corus does not report individual Business Unit
turnover.
Total turnover for H1 2003: £4.023 billion
(cf H1 2002: £3.576 billion).
Strip Products turnover represented 47% of total
Group turnover (H1 2003)
Turnover by region—H1 2003
UK 27%
Rest of Europe 53%
North America 10%
Rest of World 10%
Manufacturing operations
— Corus produced around 17 million
tonnes of crude steel in 2002, which represented c. 10% of total
EU production and positioned the company as the world's seventh
largest steel producer. (NB Blast Furnace 5 at Port Talbot was
rebuilt during 2002 and commissioned in January 2003. During this
time Corus Strip Products UK imported steel slab to make up the
shortfall arising from the blast furnace outage).
— Corus produces steel by the basic
oxygen steelmaking method at four major steelworks, located in
the UK at Port Talbot, Teesside and Scunthorpe and in the Netherlands
at IJmuiden. Steel is also produced by the electric arc furnace
method in the USA at Tuscaloosa and in the UK at Rotherham and
Stocksbridge.
— The principal raw materials in the
carbon and engineering steelmaking process are iron ore and coal,
purchased on international markets, and steel scrap. In 2002,
Corus imported c 22mt of iron ore and 10mt of coal, all through
the four deep-water terminals servicing its integrated steelworks.
Iron ore is imported principally from Australia, South America,
Canada and South Africa. Coal, for conversion into coke and direct
injection into blast furnaces is imported predominantly from Australia,
Canada and the USA,
Corus Strip Products Division
The Strip Products Division is currently headed
by Stuart Pettifor, Chief Operating Officer, and comprises the
following Business Units;
1. Corus Strip Products IJmuiden—producing
hot rolled steel strip, cold rolled and metallic coated steel.
Markets include automotive, transport, construction, shipbuilding,
freight containers, general engineering, and consumer electronics.
2. Corus Strip Products UK—producing
hot rolled steel strip, cold rolled and metallic coated steel.
Markets include automotive, transport, construction, shipbuilding,
freight containers, speciality packaging, refrigerators, fluorescent
louvres, and office furniture.
3. Corus Packaging Plus—producing
light gauge coated steel for packaging and non-packaging applications.
Markets include food and beverage cans, aerosols, household and
industrial containers, speciality packaging.
4. Corus Tubes—producing steel
tubes, hollow sections, OCTG, linepipe and pipelines project management.
Main markets are construction, heating and ventilation, engineering,
energy and automotive.
5. Corus Colors—producing organic
coated steels for the construction and consumer products markets.
Corus and Health and Safety
The health, safety and well-being of employees,
contractors, visitors and neighbouring communities are the utmost
priority for the company. A positive health and safety culture,
which does not tolerate any unsafe behaviour, is encouraged. Whilst
significant improvements have been made over the past two years,
Corus aims to continuously improve safety performance and to ensure
safe operating practices.
Corus and the Environment
— Corus is committed to environmental
care and protection by minimising the impact of its operations
and products through the adoption of sustainable practices and
through continuous improvement in environmental performance and
control.
— In addition, Corus is focused on
the full life cycle of its products from ore to processing, through
to use and recycling. This enables stronger, lighter products
to be produced, which minimise raw material usage and consume
less energy.
— Corus makes contributions to environmental
bodies under the UK landfill tax credit scheme, which supports
community causes.
Corus People
— Corus is proud of its international
workforce and recognises the contribution made by its people.
— Corus employees are highly valued
and much emphasis is placed on training and development. In 2002
the total training investment was c £50 million. In this
way Corus ensures its workforce is highly skilled and capable
of delivering world-class performance.
— At the end of June 2003 there were
50,400 employees in Corus, (25,100 in the UK and 11,600 in The
Netherlands).
Research and Development
— As well as maintaining R & D
focus in areas such as process control and environmental protection,
particular attention is given to engaging with customers at the
concept of design, in order to ensure that the best product is
specified for application, using the most cost effective process
technology.
— Corus continually strengthens its
collaborative research with its customers and their customers,
and with suppliers of other materials, as well as with specialised
research institutes.
— During 2003 Corus Strip Products
UK embarked on a major and long-term product and service development
programme, aimed at establishing the Business as the leader in
these areas. Together with these improvements, Corus continues
to focus on differentiating product and service through an innovative
and collaborative approach.
Innovation
Breaking ground in the field of innovation and
collaborating with customers to develop new products and technologies
is a field of proven expertise for Corus. New product development
programmes are targeted to anticipate the changing needs of today's
environment. New developments include:
1. Assure—pre-finished metals
with Microban antibacterial protection for controlled environments
(Corus Colors).
2. Surefast—fast-track modular
construction system for high security buildings using Bi-steel
(steel and concrete composite panel developed by Corus).
3. Neotec—a lead-free metallic
coated steel designed to help vehicle manufacturers develop emission-free
fuel tanks.
4. Templite—aluminium-magnesium
alloy with higher strength and better corrosion properties compared
to existing alternative.
5. Redeem—lightweight, compact
radiation detection system to counter dirty bombs.
6. Protact—polymer coated material
for food and beverage cans.
Demonstrating its solutions mindset, Corus proactively
seeks to solve challenges presented by changing market requirements.
For example, in response to the affordable housing issues—Corus
recently launched a new business—Living Solutions—based
at the Corus Colors operation in Shotton, North Wales. The business
provides modular housing systems for health, education and hotel
sectors.
In response to the challenge to provide alternative
energy solutions, Corus has partnered Amec, a leading international
engineering company, to develop wind farms on Corus sites.
Recent Projects Include:
— Structural steel for Wembley Stadium
and World Trade Centre replacement, NY.
— Kalzip cladding and roof system for
the new Grand Theatre, Beijing.
— Track replacement on the London Underground
system.
— Modular platform development / extension
at London St. Pancras
— Supply of body panels for London
Black Cabs.
— Steel for Singapore Mass Rapid Transit
System.
— Steel for new Millennium Centre,
and Millennium Stadium, Cardiff.
|
