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Major investment at Scunthorpe

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Corus has announced plans to invest £130M at its Scunthorpe steelworks to significantly strengthen its manufacturing capability and competitiveness in structural sections, rail and wire rod.

The investments will allow improvements in operational efficiency, extensions to the product range and improved customer service. The investment builds on the company’s Restoring Success programme which has already secured significant improvements in Corus’ service to customers and financial performance.

The new investment will allow installation of a new steel casting machine to replace an existing caster and intermediate rolling mill. Quality and efficiency improvements will be generated by this.

A world class rail production facility is to be established at the existing section mill and an on site service centre will be created to improve the offer and service to customers.

The enhanced rail capability will allow longer rail lengths – up to 120m – to be produced in response to market demands. Rod and section mills will also be developed to enhance rolling capability, flexibility, quality and service.

The rail and sections development programme is to completed by November 2006, with contracts being let this month. The new caster and rod mill developments are to be fully commissioned by August 2007.

Corus will transfer all its rail production to Scunthorpe as part of the investment programme, moving existing rail production from Workington in 2006. Paul Lormor, Executive Director, Long Products Division said: “This major investment will significantly improve our long products manufacturing capabilities, providing world-class processes that enable us to meet customers’ future expectations in the market place.  The development represents a major step forward for the Division, and is part of Corus’ long products strategy to improve the competitiveness of its core products, add value and provide a platform for future growth.”

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