CORPORATE NEWS:
Wire rod: Corus announce € 21m UK investment
Formed in 1999 through the merger of British Steel, UK, and Koninklijke Hoogovens, the Netherlands, Corus is a leading international metal company with manufacturing operations in many countries, and major plants in the UK, the Netherlands, Germany, France, Norway and the USA. The company has recently announced a € 21m investment at its Scunthorpe rod mill in the UK. The investment will provide a state-of-the-art warehousing system and extensive mill enhancements, enabling the business to significantly improve its output of premium quality steels increasingly used by the automotive industry. Corus's high-performance steel rod is the raw material for the fine wires used to strengthen vehicle tyres and is supplied to many of the world’s leading tyre producers. The steel must be of the highest quality so that it can be drawn into wires the thickness of a human hair, without breaking or losing its high-strength.
The rod is also used in the manufacture of engine valve springs, which require stringent quality requirements. These components are in constant motion when the engine is running, making them one of the most demanding applications for any steel. Around 80,000 tonnes of rod a year goes into this market, but very few manufacturers can supply steel of the required quality. Mr Peter Hogg, director, Wire Rods, commented: “This major investment reflects the potential of the rods business. It will allow us to supply more high-grade rod to meet the growing demand for increasingly sophisticated steels across the globe from the automotive industry”.
The mill's new distribution facility will store rod coils in individual compartments, protecting them from damage. The new facility will be world's best standard, and is the first of its kind in any European mill. Together with enhanced product testing capability, it will permit more rapid and precise shipment of material to automotive customers. Investment in mill modifications will bring improvements all the way along the rolling process. These will enable the mill to consistently produce rod with better surface quality, higher tolerance and improved mechanical properties. With the markets for premium rod growing, Corus is keen to expand its current portfolio of high-quality steels. Its major investment projects will result in a significant improvement in the quality of rod despatched from the mill. Mr Peter Hogg, added: "There is a great deal of potential in the wire rod business, and we are delighted that this investment will give us the opportunity to build on our strong position in the market and differentiate our position in the supply chain. We have ambitious plans for the future, and everyone is looking forward to the challenge”.
Company: |
Corus |
Country: |
UK |
Fax: |
+44 20 7717 4455 |
Email: |
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Website: |
www.corusgroup.com |