Corus premium steel for automotive industry heads for new horizons
19 Jul 2005
According to market research demand for premium quality steels in the automotive industry is growing at an unprecedented rate. Much of this demand is coming from emerging markets in the Far East and Central and Eastern Europe, where tyre production is increasing at a rapid pace. In China alone, consumption of steel tyre cord has increased by 30 per cent a year since 2001. This year, the market is expected to grow to more than 300,000 tonnes.
This shift in the demand profile of the market could not have been predicted ten years ago. The development of world-class facilities for tyre cord production in China, and Bridgestone’s tyre production plant in Thailand, are typical of the changes occurring in the market.
For Corus, a major global supplier of quality wire rod for the automotive industry, this growing demand for premium steel and its shift to overseas markets has required a radical reorganisation of its business.
The Corus Wire Rod Business, based in Scunthorpe, UK, is now concentrating on producing greater volumes of premium-grade wire rod for automotive applications such as tyre cord, which require careful attention to detail during rolling, and sensitive handling during storage, despatch and transportation. The company has invested £14m in rod mill enhancements to boost its ability to produce, handle and distribute these premium steels. Its new facilities include a fully-automated, world-class distribution centre.
As a result, Corus is meeting the high expectations of the emerging steel processing industries with quality deliveries of high-grade steel. The business is now sending more steel overseas than ever before, with exports accounting for a record 65 per cent of all rod despatched from Corus in the first quarter of 2005.
Andrew Speck, Rods International Sales Manager, says: “Our aim is to work as a global partner with our international customers, not just a UK shipper. We pay great attention to detail in getting our deliveries to customers on time and in excellent condition, and provide full back-up support through our regional offices all over the world.”
It is this commitment to service and product excellence that has secured Corus’ success in Far Eastern markets, especially China. Even though the country has become a net exporter of steel in recent years, it has a huge requirement for the premium rod that Corus produces. As a result, the volume of rod supplied into China by Corus has increased dramatically from just over 6,000 tonnes in 2000 to a predicted 70,000 tonnes in 2005 – double the volume supplied in 2004.
“These figures show that we are providing a quality of steel that is above anything indigenous steelmakers can supply,” continues Andrew. “We are constantly striving to keep the quality of our steels ahead of the competition, and our £14m investment in the rod mill will give us the tools to do this even more effectively in future.”
Corus’ UK-based teams are backed up by the company’s offices throughout the world. This global network ensures that all overseas customers get a service tailored to their needs, and benefit from local contacts and support – right along the supply chain.
“Our international focus and the change of orientation within the business mean that all our customers get the same high levels of service, whether they are in Birmingham or Beijing,” adds Andrew. “With the growth in our exports looking set to continue, the business is aligning itself to face the future as a leading international supplier of premium steels to the global automotive industry.”
Ends
Press release and pictures can be downloaded from websites: www.automotivepr.com and www.corusautomotive.com
Corus Automotive media enquiries:
Marco Ferrari +44 (0)20 7494 8050 mferrari@automotivepr.com
Belle Wilson +44 (0)20 7494 8050 bwilson@automotivepr.com
Corus marketing enquiries:
Angela Reid +44 (0) 1724 405 198 angela.reid@corusgroup.com
Notes to editors
Corus Automotive
Corus is one of the leading suppliers of steel products, services and technology to the automotive industry. A broad range of Corus steel from strip, engineering steels, special strip and tubes are used to make products that go into automotive applications including body-in-white, closures, chassis and suspension systems, powertrain, seats, safety systems and other components. Corus is committed to the global automotive industry, and, uniquely, combines its materials and vehicle engineering knowledge to respond cost-effectively to key drivers of importance to the sector, such as safety, fuel-efficiency, innovation and the environment. The Company actively supports supply chain initiatives that improve efficiency and enhance the value of steel used in automotive applications. For further information, view the Corus automotive website (www.corusautomotive.com).
Corus Group Plc (LSE/AEX: CS; NYSE: CGA) is one of the world’s largest metal producers with a turnover of over £9 billion and major operating facilities in the U.K., the Netherlands, Germany, France, Norway, Belgium and Canada. Corus’ four divisions comprising Strip Products, Long Products, Aluminium and Distribution & Building Systems provide innovative solutions to the construction, automotive, rail, general engineering and packaging markets worldwide. Corus has over 48,000 employees in over 40 countries and sales offices and service centres worldwide. Combining international expertise with local customer service, the Corus brand represents quality and strength.
