Corus moves Whitehead operations, Llanwern in difficulty

Wednesday, 27 November 2002 14:41:00 (GMT+3)   |  
       

Corus moves Whitehead operations, Llanwern in difficulty

Corus considers moving its South Wales cold strip operations Corus Special Strip (CSS) situated in Whitehead to the company's Llawern site, which is 8 kilometers away. The moving process will be completed by the end of 2003, with a cost of around £4 million. The company is aiming to strengthen the viability and strategic grounds for growth in long term. Corus Building Systems, which is also currently based in Whitehead, South Wales will take over the construction and engineering unit of CSS. Among the products of CSS are road barriers, cold form sections and construction components. CSS headquarters are located in Germany, and the manufacturing operations and sales offices are in the UK, USA, Germany and Spain. Meanwhile, the latest reports from the industry reveal that Llanwern plant is experiencing difficulties, however no confirmation from Corus with regard to any close down plans. The plant is financially troubled despite the improved performance and investments. With the moving of CSS to the plant, the situation is expected to get tighter, and further job cuts might be expected. According to industry experts, this situation is inevitable considering the overcapacity in the industry.