Tata Steel Group unit Corus is to take decisive action to mitigate the effects of the softening near-term steel demand outlook.

Corus has decided to reduce its crude steel production over the next three months by up to 20%, i.e. by around 1 million metric tonnes. The decision is aimed at aligning steel production with demand, which is now affected by the consequences of the global financial crisis.

"We are taking appropriate steps to optimise our operations and protect our sound financial position over the next few months," said Philippe Varin, Corus CEO.

No change in production from current levels is planned for the operations of Tata Steel Group outside Europe.

About Corus
Corus is Europe's second largest steel producer with annual revenues of more than £12 billion and annual crude steel production of about 20 million tonnes. With main steelmaking operations primarily in the UK and the Netherlands, Corus provides innovative solutions to the construction, automotive, packaging, mechanical engineering and other markets worldwide.

Corus is a subsidiary of Tata Steel Ltd.  

About Tata Steel
Established in 1907 as Asia's first integrated private sector steel company, Tata Steel Group (including Corus) is the world's sixth largest steel producer with a crude steel capacity of over 28 million tonnes. It is now the world's second most geographically diversified steel producer, with operations in 26 countries and commercial presence in over 50 countries. The Tata Steel Group, with a turnover of USD 33 billion in 2007-2008 and with over 82,700 employees across four continents, is a Fortune 500 Company.