Corus Special Strip

Corus group of companies – Reasons for why it wasn’t a successful venture

By admin

Formation and Existence:

Corus group limited is a large holding company, under which a lot of subsidiary companies function. The role of these subsidiary companies is to manufacture, process and distribute steel products in Europe and also globally. It was incorporated on July 16th, 1999. The company was a result of the merger between Koninklijke Hoogovens and British Steel.Plc. The company was a constituent of the FTSE 100 Index. The establishment still exists by under a different banner. The Tata Steel of Indis acquired the company in the year, 2007. Now it is working under the banner, ‘Tata Steel Europe.’

Corus group of companies

Functions of the company:

  • The company operates under three divisions, Strip Products, Long Products and Distribution and building system.
  • The Strip products division manufactures hot rolled steel strips and coated metallic products. This division also includes the manufacturing of pre-finished steel, coated steel for packaging and non-packaging applications.
  • The Long Product division provides plates, sections, wire rods and semi-finished steel. They also manufacture railway and engineering products and offer related services.
  • Finally, the third division, the distribution, and Building systems offer steel and aluminum building systems. They offer product and service solutions for trading, technology and consultancy businesses in addition to operational assistance.

The recession in 2010 and aftermath:

  • The economic downturn in Europe as a result of the Great Recession in the year 2010, took a toll on almost all the Europian countries including Corus. Their debt shot higher than equity and the more than 1000 employees were shown the doors.
  • To add to things their 10-year contract with Teesside Cast Products were unexpectedly canceled and caused major confusion in the affairs of the organization
  • Corus had to close down their all major employment benefits were revoked temporarily. Only after this, the company decided to take over the name of Tata Steel and its logo.
  • After Tata had taken over the company, it employed major restructuring proposals to revive the company. But it did nothing more good than costing 900 more jobs.

Sale plans:

Tata Steel couldn’t cope up with the increasing demand in Europe. The debt kept increasing even after the acquisition. So Tata Steel decided to offer the European Long Products division to the Klesch Group, in order to reduce the liabilities.Even after the company sold out its major loss-making divisions the company couldn’t get over and make profits and all acquisition talks ended in vain. Then the Tata fixed its final calling on 28th May 2016 for the bidders to bid for the remaining UK business and the sale was finally completed by the end of 2016.


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