News: Corus returns to profit

Tata Steel Europe including the Corus sites in Rotherham has enjoyed a dramatic turnaround in fortunes after reporting a £355m pre-tax profit for the second half of the 2009-10 financial year.

The Indian-owned company reported that this was mainly due to a stronger order book leading to higher capacity utilisation and lower costs.

The profit is compared to a loss of £562m that Corus Steel Europe reported for the first half of the financial year.

Kirby Adams, the chief executive officer and managing director, said: "I am pleased to report the decisive measures we have been taking to combat the 35 per cent slump in European steel demand last year have succeeded in dramatically improving the company's financial and safety performance.

"The employees of Tata Steel Europe deserve great credit for achieving growth in market share, a higher value-added mix, significant and lasting cost reductions and in quarter four, the first profit after tax, in 18 months.

"As we move into a 'one company business' model, ever greater opportunities lie ahead to improve business performance and win customer support."

As part of a restructure in 2009, Corus announced in Rotherham that 700 jobs would be lost in Rotherham with a further 400 announced in July.

With signs that more positive trading conditions were emerging, this April they recruited 50 staff on an agency basis to support its manufacturing operation in Rotherham.

Corus still employ more than 1,500 people at its Rotherham and Stocksbridge plants, as well as its Rotherham technology centre.

Corus website

Images: corusgroup.com