International Operations

Blast furnaces at Corus’ integrated steel works at Scunthorpe, UK named after Britain’s Four Queens.

Millbank in London where Corus’ head office is located.

Corus is Europe’s second largest steel producer with annual revenues of Rs. 82,674 crores (£9.7 billion) and crude steel production of 18.3 million tonnes in 2006. Corus has a presence in nearly 50 countries, including its global network of offices and service centres.

Corus’ shares were listed (de-listed post the acquisition) on the London, New York and Amsterdam Stock Exchanges until the acquisition of Corus Group plc by Tata Steel in April 2007.

Corus was formed on October 6, 1999 following the merger of Koninklijke Hoogovens and British Steel. Philippe Varin who was appointed as Chief Executive of Corus in May 2003 launched the “Restoring Success” programme, designed to deliver a Rs. 5,796 crores (£680 million) EBITDA improvement in Corus’ financial performance. This programme, completed at the end of 2006, has underpinned the significant improvement in Corus’ financial performance, delivering savings through cost reductions and improved operational efficiency. It has also delivered significant improvements in safety performance and customer service levels.

Corus operations

Corus’ main steelmaking operations are located in the UK and the Netherlands with other plants located in Germany, France, Norway and Belgium. Corus produces carbon steel by the basic oxygen steelmaking method at three integrated steelworks in the UK at Port Talbot, Scunthorpe and Teesside, and at one in the Netherlands at IJmuiden. Engineering steels are produced in the UK at Rotherham using the electric arc furnace method. Corus estimates that, as at 30 December 2006, it was the ninth largest steel producer in the world and produced 18.3 mt of crude steel in 2006 (equivalent to 18.8 mt of liquid steel).

Corus has four main operating divisions; Strip Products, Long Products, Distribution & Building Systems and Aluminium, each being the responsibility of an individual Executive Committee member. The activities of each division are organised into individual business profit centres, each of which has its own managing director who, with the respective management team, has responsibility for the performance of that business.

Corus has sales offices, stockholders, service centres and joint venture or associate arrangements in a number of markets for distribution and further processing of steel products. These are supported by various agency agreements. There is an extensive network in the EU while outside the EU Corus has sales offices in around 30 countries, supported by a worldwide trading network.

Market focus

Corus delivers innovative solutions, differentiated products, reliable service and sound technical advice to its customers around the world. Principal end markets for Corus’ steel products are the construction, automotive, packaging, mechanical and electrical engineering, metal goods, and oil and gas industries. Construction is the largest market sector for Corus, with a strong position in commercial and industrial construction. New opportunities are being explored in areas, which show growth potential such as residential, health and education. Corus is a leading supplier to the automotive sector and is the third largest supplier to this sector in Europe.

Europe, principally the EU, is the most important market for Corus, accounting for 80% of total turnover in 2006. Corus’ steel divisions accounted for 91% of total turnover in this period.

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