Corus and Network Rail enter into new seven year contract for supply of rail

15 Dec 2005

Corus has signed a seven-year, multi million pound contract to supply Network Rail, the operator of Britain’s rail infrastructure, with rail. The contract is valued at around £40-£50 million in its first year.

Joe Guérin, Managing Director for rail at Corus said, “We are delighted to have entered into a new and exciting period, where Corus in the UK will soon begin to supply longer rail to our customers, in particular to Network Rail. Our investment program, using continuous improvement and lean techniques, to build a world-class manufacturing and service centre for rail in the UK is underway and on schedule. Together with our existing rail facilities at Hayange in France, this confirms Corus’ commitment to being Europe’s leading rail producer and supplier.”

Iain Coucher, Network Rail’s Deputy Chief Executive, said: "We are carrying out a huge amount of work in the years ahead in a bid to rebuild Britain's railways.  This challenging task is well underway and this contract will ensure that we have a quality product that will help us to modernise our network, as well as deliver a better train service for passengers."

Corus manufactures approximately 500,000 tpa of rail and track products in the UK and France and is Europe’s leading rail producer. Corus is on track to complete its new £130 million investment program at the company’s Scunthorpe steelworks in the second half of 2006, which will see, for the first time, the manufacture of rail up to 120 metres long in the UK. Corus expects to begin to supply rail from its new world class manufacturing facility and new rail service centre at Scunthorpe by the end of 2006. Until then, Network Rail will be supplied from Corus’ existing rail plant at Workington.

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 48,300 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.

Pictures to support this release are available upon request, email andrew.marshall@corusgroup.com