Tyre cord and spring rod users benefit from another Corus investment
14 May 2004
Corus has announced a £14m (€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.
Peter Hogg, Director, Wire Rods, says: "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.
Andrew Page, Managing Director of Corus, Construction & Industrial, of which Wire Rod is a key part, says: "The investments in Wire Rod are part of a £44m package of linked investment to the Scunthorpe operation. New steelmaking equipment will increase the plant’s capacity for higher value steels and provide the foundation and focus for Corus to competitively satisfy future demand from the most demanding customers and applications."
Peter Hogg adds: "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." <!-- End Insert article -->
Ends
Corus Automotive media enquiries:
Marco Ferrari +44 (0)207 494 8050
mferrari@automotivepr.com
Laurissa Mirabelli + 44 (0)207 494 8050
lmirabelli@automotivepr.com
Corus Construction & Industrial enquiries:
Jill Southward +44 (0) 1724 402090 jill.southward@corusgroup.com <!-- End Insert article end-->
