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Corus to build world-class rail welding facility to enhance customer service

16 Aug 2006

Corus has today announced that it will build a world-class rail welding facility for its rail manufacturing business at its Scunthorpe steelworks. This development is part of an ongoing programme at the site, which was announced in February 2005 to further strengthen and grow the structural sections, rail and rods businesses within Corus.

The new welding facility will be part of the new rail service centre, which is currently under construction and will replace existing welding facilities at Corus’ Workington and Castleton sites. It is anticipated that welding will cease at the Castleton site from 1 December 2006 and the new facility will be operational from March 2007.

Joe Guérin, Managing Director of Corus rail businesses said “After reviewing a number of options we concluded that significant operational and logistics advantages could be gained by having the manufacture and welding of rail on the same site. Our customers will therefore benefit from improvements in manufacture, testing and welding technology with a priority on customer service."

For further information, please call:

National inquiries Annanya Sarin, Corporate Relations: Tel: +44(0) 20 7717 4532

Local and Trade media inquiries: Andrew Marshall, Tel: +44 (0)1904 454647

Notes to editors:

Corus’ rail business supplies rail networks worldwide and has commercial and technical teams, supported by local representatives in over 85 countries with extensive experience in international trade. Customers benefit from expertise in high-speed lines, heavy haul, urban transport and logistics. The rail product portfolio includes; heavy rail (flat bottom, bullhead, conductor) in all grades, also head hardened, grooved, stainless steel clad, corrosion resistant, asymmetric, light, bridge and crane rail, long welded rail up to 216m, steel sleepers, fishplates and base plates.

This investment is part of the on going programme to invest £130m at the Scunthorpe site.  This will enable rail Corus to roll longer rail of up to 120m in response to customer demands. Currently Castleton receives 36m rail from the Workington plant and welds it into 216m continuous welded strings.

Employees at the Castleton and Workington welding sites will be offered transfer opportunities to the new welding facility at Scunthorpe (23 people are employed at the Castleton site).  Additional posts will be recruited locally. The Consultation process with the Trade Unions and employees will begin immediately.

Corus Group Plc (LSE/AEX: CS; NYSE: CGA) is one of the world’s largest metal producers with annual turnover of over £9 billion and major operating facilities in the U.K., the Netherlands, Germany, France, Norway and Belgium. Corus’ four divisions comprising Strip Products, Long Products, Distribution & Building Systems and Aluminium provide innovative solutions to the construction, automotive, rail, general engineering and packaging markets worldwide. Corus has 42,600 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.

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