Tata Steel to merge Corus to cut costs; jobs at risk
India's biggest steelmaker Tata Steel is set to merge its British unit Corus with itself by next year to save cost of up to 350 million pounds and the move is likely to put thousands of jobs at risk.business Updated: Dec 15, 2008 12:53 IST
India's biggest steelmaker Tata Steel is set to merge its British unit Corus with itself by next year to save cost of up to 350 million pounds and the move is likely to put thousands of jobs at risk, a media report has said.
"Corus, the former British Steel, is to be merged with its parent company, India's Tata Steel, in a move that puts thousands more UK jobs at risk," the Mail said in its online edition.
Corus merger puts jobs in jeopardy as Indian steel giant aims to cut costs in the UK by 350 million pounds, the report said.
Tata Steel through this merger aims to create a group that could become the second biggest steel maker in the world after Luxembourg based ArcelorMittal, the report further said.
"News of the plan could undermine delicate negotiations in which unions are discussing accepting pay cuts of up to ten per cent for the workforce of 25,000, including the 1,000 workers at the threatened Llanwern steel works in South Wales," The Mail added.
Quoting Alan Todd, construction and development general manager at Corus, the report said : "Tata Steel's construction-related assets would benefit from Corus in the UK and the Continent and there would also be huge cost benefits from Tata's supply of raw materials".
Earlier, on December 11, Corus was offered by its worker unions to carry out 10 per cent cut in pays for six months in a last ditch to save a factory in Wales from closure.
Tata Group had acquired the Anglo Dutch giant Corus Group Plc for USD 12 billion last year, pursuant to which Corus became a subsidiary of the Indian steel giant.