Corus seeking for £307 million through placing for funding
Recent market reports reveal that for the funding of restructuring in operations and other efficiency
investments, the financially troubled Anglo-Dutch steelmaker Corus is planning to make a share offer to its prevailing shareholders. Targeted gain through the offering of five new ordinary shares for 12 existing shares is £307 million ($513 million), £250 million of which will be laid out for the restructuring plan. According to the reports, £160 million of this amount will be allocated for expansion of its strip and long products operations, located in South
Wales and northern England, and almost £90 million for the restructuring of engineered steel business. Moreover, the plan is expected to soar the annual profit up to £120 million by end of 2006.
On the other hand, it is obvious that Corus won't need Teesside for the Group's
slab requirements once the restructuring is completed. However the plant, located in northeast England, will have the opportunity to sell its
production to the international market and continue operating as long as it makes profit. Accordingly, 2200 workers of Teeside plant are under risk of discharge, apart from the 1150 workers planned to be dismissed from the plants located in Sheffield, West Midlands and South
Wales.
In the meantime, the blast furnace at Port Talbot steelworks in South
Wales has been rebuilt after the explosion that took place on November 8, 2001, in which 3 workers were killed and 12 were injured. The latest investment, to be completed by March 2005, will increase the annual steel
slab production around 30% up to almost 5 million tons.