Indian-owned steel group Corus will cut its production by 30% over the next six months due to weakening demand in Europe amid the global downturn, the company said Friday.
"The current slowdown requires us to adapt our operations to the changing environment with maximum speed," said Corus chief executive Philippe Varin in a statement.
The Anglo-Dutch group, which was bought last year by India's Tata Steel for $13.7 billion, will temporarily shut down three blast furnaces in Britain and the Netherlands as part of the output reduction.
Last month Corus announced plans to reduce its third-quarter production by about 20% "in order to align its production levels with demand in the European market," the group statement recalled. "Corus has now decided to extend the production cuts beyond December. Corus expects to produce about 30% less crude steel than planned during the two quarters to the end of March 2009."
Varin added: "We are adopting proactive and responsible measures in the areas of production and costs to optimize our results. Meanwhile, our strategy for long-term growth remains unchanged."
Copyright Agence France-Presse, 2008