Tata Steel, the world's sixth largest steel maker, plans to cut production at its Corus unit in Europe by up to 20 per cent (or 1 million tonnes) over the next three months amidst slowing demand.
The decision is aimed at aligning steel production with demand, which is now affected by the consequences of the global financial crisis, the company said in a release.
''We are taking appropriate steps to optimise our operations and protect our sound financial position over the next few months," said Philippe Varin, Corus CEO.
No change in production from current levels is planned for the operations of Tata Steel Group outside Europe, the release added.
Corus is Europe's second largest steel producer with annual revenues of more than £12 billion and annual crude steel production of about 20 million tonnes. With main steelmaking operations primarily in the UK and the Netherlands, Corus provides innovative solutions to the construction, automotive, packaging, mechanical engineering and other markets worldwide.
Tata Steel is Asia's first integrated private sector steel company, Tata Steel Group (including Corus) is the world's sixth largest steel producer with a crude steel capacity of over 28 million tonnes. It is now the world's second most geographically diversified steel producer, with operations in 26 countries and commercial presence in over 50 countries. The Tata Steel Group has a turnover of $33 billion in 2007-2008 and over 82,700 employees across four continents.
Corus, Europe's second largest steelmaker, now produces more than 20 million tonnes of crude steel a year.
Tata Steel, however, ruled out the possibility of any job cuts in the company following the global financial turmoil.
Tata Steel said operations outside Europe would not be affected and there would be no material change in steel operations in India and Southeast Asia.
''The decision is aimed at aligning steel production with demand, which is now affected by the consequences of the global financial crisis,'' it said in a statement.