Indian steel companies to cut production by 30pc on weakening global demand

[Naveed Yaseen]

LONDON, Nov 7: Indian-owned steel group Corus is to cut its production by 30 per cent over the next six months due to weakening demand in Europe amid the global downturn, the company said on Friday.

“The current slowdown requires us to adapt our operations to the changing environment with maximum speed,” said Corus chief executive Philippe Varin in a statement.

The Anglo-Dutch group, which was bought last year by India’s Tata Steel for $13.7 billion, will temporarily shut down three blast furnaces in Britain and the Netherlands as part of the output reduction.

Last month Corus announced plans to reduce its third-quarter production by about 20 per cent “in order to align its production levels with demand in the European market,” the group statement recalled.

“Corus has now decided to extend the production cuts beyond December. Corus expects to produce about 30 per cent less crude steel than planned during the two quarters to the end of March 2009,” it said.

“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,” it added.

Varin added: “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.”—AFP

http://www.dawn.com/2008/11/08/ebr16.htm