Corus to restart steel production at UK plant

Corus to restart steel production at UK plant

London: British steel-maker Corus said Monday it would restart production at its Llanwern works in Wales, encouraged by a rise in the price of steel as the global economic downturn eases.

The company, Europe’s second-biggest steel concern, said it would restart production at the hot rolling mill, which was shut down in January due to lack of demand.

According to The Times of London, however, the reactivation will not restore the more than 500 jobs cut by Corus at the time because operating costs have since risen.

Steel-makers have suffered as the economic crisis battered large customers in the construction, automotive and equipment industries.

Corus, owned by Indian firm Tata Steel, announced in June that it would shed more than 2,000 jobs or 10% of its UK work force, in response to the slump in demand.

However, world steel prices and production have risen recently, though from very low levels compared to a year ago.