In order to align its production levels with demand in the European market, Corus last month announced plans to reduce its third-quarter production (October-December, 2008) by 1 million tonnes of crude steel, equivalent to 20 per cent of its output.
Corus has now decided to extend the production cuts beyond December. The company expects to produce about 30 per cent less crude steel than planned during the two quarters to the end of March 2009.
Consequently Corus will temporarily idle one blast furnace at each of its Scunthorpe, IJmuiden and Port Talbot works and will also adjust output levels on its downstream production units to suit market conditions in their respective regions and end-use sectors.
“The current slowdown requires us to adapt our operations to the changing environment with maximum speed,” said Corus CEO Philippe Varin. “We are adopting proactive and responsible measures in the areas of production and costs to optimise our results. Meanwhile, our strategy for long-term growth remains unchanged.”