Wednesday, March 12, 2008

Corus to explore ways to secure raw materials

Anglo-Dutch steelmaker Corus, owned by India's Tata Steel, will explore opportunities to secure "captive" supplies of raw materials to limit its exposure to global prices, its CEO said on Tuesday.

"In the longer term, opportunities for securing captive supplies of iron ore, coking coal and other strategic raw materials will be explored," Chief Executive Philippe Varin told Reuters in an e-mailed response to questions.

"At the same time, Corus will continue to invest in operational improvements and efficiency saving to limit the impact of increases in input costs," Varin said.

Steelmakers have faced a huge increase in their cost of production since the start of the year as the price of key steelmaking ingredients such as iron ore and coking coal has risen significantly.

Corus itself accepted a 65-66 percent price rise for iron ore from Brazilian mining giant Vale, joining many other steelmakers in the industry.

Read the full story at Reuters India

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