Corus has announced both job and production cuts.

Europe’s second-largest steel producer, Corus, has announced it will cut its crude steel production rates by 30% by the end of March 2009, in addition to job cuts totalling 400.

The company cited a need to “align its production levels with demand in the European market”. It is a surprise increase on Corus’ announcement last month of a 20% cut in its production levels.

Prior to the announcement of the cuts in manufacturing, Corus also revealed it was axing 400 jobs from its distribution division, affecting employees in Wales and the North of England.

Philippe Varin, Corus’ CEO, said of the production cuts: “The current slowdown requires us to adapt our operations to the changing environment with maximum speed. We are adopting proactive and responsible measures in the areas of production and costs to optimise our results. Meanwhile, our strategy for long-term growth remains unchanged.”
 
Speaking of Corus’ job cuts, Roy Rickhuss from Community – a worker’s union – said: “Community is disappointed and saddened by today’s [6 November] announcement by Corus that there will be widespread redundancies within the Distribution division. Community will do everything in its power, through the consultation period, to work with the company to save jobs where they can be saved and to help those affected through this difficult time.”
 
Corus is part of the Tata Steel Group, the sixth largest steel producer in the world, and manufactures more than 20 million tonnes of steel every year. The majority of its steelmaking operations are in the UK and the Netherlands, while the Group has operations around the world, employs 80,000 people and has a crude steel capacity of 28m tonnes.