Corus Packaging Plus announces 120,000 tonnes capacity reduction in support of more balanced supply/demand situation

Given the structural overcapacity existing in packaging steel production in Europe, Corus Packaging Plus (CPP) today announced it will reduce production capacity by 120,000 tonnes/year in support of a more balanced supply/demand situation. This reduction will be implemented at CPP's production site in Trostre, Wales, UK, from January 2008 and will not affect Trostre's product portfolio nor CPP's commitment to customers.

Over the last two years, the performance of Corus’ packaging steel business has been adversely affected by continued significant cost increases for raw materials and energy, and increased packaging steel manufacturing capacity in Europe.

CPP’s aim is to build a more sustainable packaging steels business and to fulfil its longer term commitment to the steel packaging supply chain. As part of its normal business processes, CPP will continue to monitor steel packaging market developments and review its strategy on an ongoing basis.

Commercial enquiries:

Wim Hamers, Director Commercial, Tel (+) 31 251 493300

Media enquiries:

Annanya Sarin, Corus, Corporate Relations Tel. +44 (0) 20 7717 4532

Notes:

Corus Packaging Plus is one of the global market leaders in the manufacture of coated strip products and steel for packaging production used in the food and beverage industries and for other domestic and industrial applications.  CPP focuses on innovative new materials, applications and processing technologies, working closely with its business partners to increase value through the supply chain.  CPP supplies 1.5 million tonnes of high quality light gauge steels to the packaging industry worldwide.

Corus is Europe's second largest steel producer with revenues in 2006 of £9.7 billion and crude steel production of 18.3 million tonnes, primarily in the UK and the Netherlands. Combining international expertise with local customer service, the Corus brand represents quality and strength, providing innovative solutions to the construction, automotive, packaging, mechanical engineering and other markets worldwide. Corus is a subsidiary of Tata Steel, the world's fifth largest and second most global steel producer. With a combined presence in 45 countries, Tata Steel including Corus has 84,000 employees across four continents and a pro forma crude steel production of 27 million tonnes in 2007.