International Operations

Community involvement

Corus recognises that its operations influence the communities and societies within which it operates and it aims to play a positive role. The company promotes and encourages economic, environmental, social and educational development where possible and supports employees’ involvement in various local initiatives.

Employment and economic development
At the end of 2006, Corus directly employed 41,200 people and many thousands more indirectly through contractors and suppliers. The company is also active in stimulating regional employment.

Regeneration – UK Steel Enterprise
Through UK Steel Enterprise, a wholly-owned Corus subsidiary, the company seeks to support the economic regeneration of communities affected by changes in the steel industry.

Sponsorships and charitable donations
Many of the Corus businesses have strong links to their neighbouring towns and surrounding regions. The company
supports cultural, social, educational and sporting activities that contribute to the well-being of residents, both in the immediate vicinity of its plants and elsewhere.

Triathlon sponsorship
Corus Kids of Steel is a UK wide initiative to bring Corus’ sponsorship of the Triathlon to the communities in which it operates. Corus Kids of Steel is a series of events designed to give children the chance to have a go at a triathlon
in a safe, fun and non-competitive environment whilst encouraging activity and learning about healthy lifestyles. Corus employees are involved in triathlon by volunteering for events, encouraging local schools to become involved and helping to set up new local children’s triathlon clubs. Over 5,000 children will take part in the first series, with this number set to grow in 2008.

Supporting local education
In addition to donations, Corus supports the educational development of its communities. Its primary purpose is to encourage interest in, and enthusiasm for, the study of materials science and its application.

Corus’ people are its ambassadors and it is their individual and collective efforts that continue to build and maintain the company’s reputation.

Tata Steel and Corus: a compelling vision in steel

Corus’ strategy is focused on carbon steel with a growing focus on value-added, differentiated products to further develop a strong and sustainable competitive position in its Western European markets. Beyond “Restoring Success”, Corus has launched “The Corus Way”, based on the principles of:

• Best supplier to best customers
• World-class processes
• Selective growth

Corus has increased capital expenditure to support the ambition of increasing the proportion of differentiated products sales and operational efficiency of its existing asset base in Western Europe. Two major investments in support of this are underway, namely:

• Rs. 1,108 crores (£130million) investment at Scunthorpe in the UK to improve Corus’ competitive position in the structural sections for the construction market, rail, and wire rod for the automotive markets is on track to be completed by the mid 2007.
• 4-year, Rs.1,304 crores (£153million) investment at IJmuiden, in the Netherlands, in a new galvanising line and cold mill at our lowest cost site, is also on track. This investment is designed to reinforce our existing market position in the automotive and construction markets, including the development of new advanced high strength steels.

On April 2, 2007, Corus became a subsidiary of Tata Steel, creating the world’s sixth largest steel company and securing a global presence with access to low-cost steelmaking and high growth markets.

The combination of Tata Steel and Corus will enable Corus to move towards the next level of strategic transformation through access to low cost steel production and high growth markets in Asia. The transaction creates the sixth largest steel producer in the world and Corus can now grow and compete on a global scale, whilst still pursuing its existing plans for Western Europe. Both companies also share a set of common, core values and the same approach to business performance. A similar commitment to continuous improvement augurs well for the future of the enlarged Group.

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