Corus confirms 500 job losses in Scunthorpe
CORUS has confirmed the Scunthorpe steelworks will take the biggest jobs hit in the UK.
Here is the Corus statement in full:
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Corus's Scunthorpe steelworks
Corus Long Products Division has today announced proposals, which would further align its business to an anticipated prolonged downturn in global steel demand. The proposals would lead to the loss of 1,922 jobs across the UK, and 123 jobs in The Netherlands.
Corus has also announced plans to restructure its Tubes business to allow it to meet current and future demand.
The plans include the streamlining of Corus Tubes' organisational structure across its six sites (in the UK and Netherlands), the rationalisation of its assets, including the closure of its Arnhem site, and the reduction of shift levels in Hartlepool.
The business has already made significant cost savings since the market downturn began last autumn with the support of its employees and union representatives, but a number of sites have suffered a further deterioration in demand for their products, and the market forecasts indicate that the recovery in demand will take longer than previously anticipated.
The company is proposing the following job reductions:
• Stocksbridge – 379
• Rotherham (including 45 at Brinsworth) – 422
• Hartlepool – 156
• The Netherlands – 123
• Teesside Beam Mill (Lackenby) – 150
• Skinningrove – 113
• Dalzell and Clydebridge – 96
• Corby – 88
• Bolton – 9
• Darlington – 9
In addition to this, a review of the management, professional, technical and support services across the division begins today.
It is anticipated that this will lead to the loss of a further 500 jobs, with the majority expected to be from Scunthorpe.
Phil Dryden, divisional director, said: "This review recognises that we need to reduce our cost base."
Despite these changes, Corus will retain its existing customer offering and it will continue to be able to respond to any new opportunities.
"Since last autumn, we have experienced a significant reduction in orders, particularly from the automotive and construction sectors, and we've already taken a number of steps to align our costs to this lower demand, " added Mr Dryden.
"There has been a more recent decline in some of our order books, however, and the latest market forecasts indicate that the recovery in demand will take much longer than previously anticipated. This slow and prolonged recovery means we have to take urgent action to restructure our business.
"At the same time, we will retain the capability to service our existing customers and be ready to respond to any new opportunities as they arise.
"I appreciate how distressing this news is for all those affected but I am also extremely aware of our responsibility to achieve the ongoing survival of the Long Products businesses, the impact they have on the communities in which they operate and the remaining employees.
"With regard to our Tubes business, the plans we are proposing today will create a viable business capable of being competitive both today and in the future. The changes are necessary to reduce costs and make the business more efficient in an increasingly competitive market."
Consultation with employee representatives will begin at the affected sites.











22 Comments
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by Nicole Guymer, scunthorpe
Thursday, July 02 2009, 4:17PM
“I WAS INTERVIEWED ON THURDAY THE 25 OF JUNE ABOUT THE JOB CUTS AND I HAD A PICTURE DONE PLEASE COULD YOU TELL ME WERE TO FIND THE PICTURE AND INTERVIEW I WAS OUTSIDE COURT AND A LADY CAME ACROSS AND ASKED ME QUESTIONS”
by marzk, the polland
Friday, June 26 2009, 10:27PM
“shame LOL we take all your jobs we no lazey”
by disgruntled of Broughton, support services
Friday, June 26 2009, 12:25PM
“Take a walk around the glass palace Lyons,all trying to look busy but doing nothing.Sat on the edge of desks passing the time of day and NOTHING else.”
by The Chubby Hooker, scunny
Friday, June 26 2009, 10:52AM
“When all the major industries were privatised in the 80's under hte snatcher regime, it left them open to be snapped up by foreign investors. Corus, BSC is now just an outpost of an Indian conglomerate. The impact on the workforce or the town it's located in, will NEVER be a consideration. They'll make all the right noises about caring, helping etc but essentially the people who work here mean less than nothing to the bean counters in a far off land. (Ironically it mirrors the way Britain treated much of the world years ago).
I know the nationalised industries were inefficient and something needed doing, but hopefully we've learnt something since then. Is there not a case for taking some of these industries back and running them with COMPETENT management (ie not politicians). If they could then match prices then - all orders for UK companies could then be filled by our own plants.
The economy faces as great a challenge as it did in the post war years and we should consider reclaiming the family silver. And what about a government backed 'Buy British' campaign like the successful one in the sixties.....”
by Jon, home
Thursday, June 25 2009, 10:40PM
“If the figures are correct Corus is closed as of March 2010, the situation is beyond financial recovery,to buy a plant at 3 times its true value is a major business error, to do so prior to a recession is financial suicidal.
Ratan the game of poker is over ALL IN OR FOLD your call ??????”