Tata owned steel giant Corus to cut production by 30 percent

November 8th, 2008 - 1:44 am ICT by IANS  

London, Nov 8 (DPA) Steel giant Corus, Europe’s second-largest steel company owned by India’s Tata Steel, Friday announced plans to cut production by 30 percent over the next six months.The company, formerly British Steel, cited the global economic downturn for its decision to close two blast furnaces at its plants in Britain, and one in the Netherlands, until next March.

On Thursday, Corus said 400 jobs would be cut in its distribution business, which employs 2,400 people in Britain and Ireland.

The company announced last month that it would reduce production between October and December by a million tonnes of crude steel, around 20 percent of its output, to align production levels with demand.

Friday’s statement said it had now decided to extend production cuts beyond December and expected to produce about 30 percent less crude steel than planned during the two quarters to the end of next March.

On Wednesday, ArcelorMittal SA, the world’s biggest steelmaker owned by Indian billionaire Lakshmi Mittal, announced in Luxembourg that it was cutting production because of slowing global demand.

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