Posted on 16 Dec 2008
Corus denies reports of merger with Tata Steel
Corus Group, the UK unit of Tata Steel, said the newspaper reports that it may merge with its parent and move operations to China unless carbon emissions rules are overhauled are “false”. These stories are “completely false,” Corus spokesman Bob Jones, said on Monday.
Tata may combine with Corus as the British company attempts to save ￡350 million in costs, the Daily Mail said without saying where it obtained the information. Corus chief executive officer Philippe Varin threatened to move the firm’s European operations to China unless regulations on carbon emissions are overhauled, The Independent reported.
Corus, which operates plants in the UK and the Netherlands, said December 11 that “all options” are open as it holds talks with labour unions, including the possibility of cutting pay, as the company seeks to slash costs because of weakening demand. Corus said in October it may extend a 20% output cut into the first quarter.
Steelmakers across the world are cutting jobs and production as slowing economies erode demand for the metal from carmakers and builders. ArcelorMittal, the world’s biggest steelmaker, said November 27 that it may slash as many as 9,000 jobs, or 3% of its global workforce, as part of its bid to lower costs.
