The Anglo-Dutch steel major, Corus, a part of Tata Steel, on Monday announced a major restructuring that would involve job losses of around 3,500 along with a series of divestments and asset restructuring apart from an overhead review. Corus currently employs about 42,000 people.
However, the company has also stated that it would make every effort to achieve the job losses through voluntary redundancies, whilst retaining critical skills in the business. A comprehensive range of redundancy packages and outplacement support services would be made available to those leaving the company. There would be consultations with employees and their representatives throughout the process.
In a statement issued on Monday, the company said, “Corus would be putting on sale its aluminium smelters in Germany and the Netherlands and advanced discussions on the sale of a majority stake in Teesside Cast Products, which would bring clarity to the future of the Teesside operations beyond the current off-take agreement”.
In asset restructuring the company would target to bring down costs by at least 20% by mothballing of the Llanwern hot strip mill; restructuring of engineering steels into two businesses and a a company-wide efficiency improvement review, including a review of support functions such as IT, finance and human resources.
In addition, the company would make changes to the British Steel Pension Scheme. While the scheme is in a healthy position, the company would close the Defined Benefit scheme to new recruits, who would be offered a Defined Contribution scheme. Steps will also be taken to ensure that the company contribution to future service for existing members remains at 12%.