16
Aug
£185m Corus investment at Port Talbot blast furnace
A £185m investment at Corus' giant steelworks in Port
Talbot has been announced. It involves rebuilding an old blast
furnace at the plant, which employs around 5,000 workers. The
company called it a "major step" towards positioning the plant as a
producer of high-quality strip products "on a global scale". The
rebuild will start in July 2012 and aims to safeguard the furnace
for another 20 years. The project is the biggest investment the
steelworks site has seen for many years. The investment in Port
Talbot No 4 will improve safety and environmental performance.
David Ferris, chair of the multi unions at Port Talbot, said: "This
is a massive boost for the area. Following our recent announcement
that we are taking on some 150 young people, this news promises
them a strong future - and a sustainable future for the whole
community." The rebuild will boost the capacity of the two blast
furnaces by up to 400,000 tonnes per year. Corus, which was bought
by India's Tata Steel for $12bn (£6bn) in 2007, is Europe's
second largest steel producer. The plant supplies steel for
construction, car manufacture, packaging and mechanical engineering
across the globe. Corus managing director and CEO of Tata Steel
Europe, Kirby Adams said the investment was partly due to the
commitment shown by workers across its sites in south Wales during
the economic downturn. He said: "This investment is a major step in
achieving Tata Steel's ambition to position Port Talbot as a
producer of high-quality strip products on a global scale and an
internationally competitive cost base. "Our capital expenditure
decisions aim to invest in those who invest in themselves. "The
commitment and capability shown by our south Wales employees, to
meet the challenges posed by the downturn, together with constant
support we have received from the Welsh Assembly Government and the
local community and unions, are important factors that have led to
this decision." 'World class' He said the project would enable the
plant and its supply chain to continue improving the quality of its
services and products. The integrated steelworks business, known as
Corus Strip Products UK, also has a base at the Llanwern steelworks
in Newport. Between the two sites the business has the annual
capacity to produce some 5m tonnes of steel. Corus chief operating
officer Karl-Ulrich Köhler said: "This is a major investment
designed to provide Port Talbot No 4 with a long new campaign life
of 20 years. "The furnace's energy efficiency and productivity will
also be improved." Along with the rebuilt No 5, the two blast
furnaces employ 200 workers, around the clock. The investment was
welcomed by the Welsh Assembly Government. First Minister Carwyn
Jones said: "I am delighted to hear that Corus are making this
major investment in Port Talbot which has a long, proud history of
steel making and is a vote of confidence in the productivity of
both the management and the workforce." He said it showed Wales
could compete with the rest of the world in manufacturing.
Community, the majority union at Corus, said the project
demonstrated Corus' faith in the British steel industry. But
general secretary Michael Leahy said: "While Port Talbot's future
as a centre of steelmaking excellence appears secure, the delay in
concluding a deal that would see the resumption of steelmaking on
Teesside continues to undermine the foundations of the industry.
"Community Union again calls for Corus to progress a deal with Thai
steelmaker SSI." In December 2009, Corus announced it was
curtailing production at its Teesside Cast Products factory,
putting 1,700 people out of work. The decision was blamed on the
collapse of a 10-year deal signed by an international consortium
and led by Italian steel specialists Marcegaglia. On 13 August
2010, Corus announced plans to build a £31.5m manufacturing
plant on the same site at Redcar, creating up to 220 jobs. The new
facility will produce monopiles, the massive steel structures which
are used to secure offshore wind turbines to the seabed.
Source: http://www.bbc.co