Tata Steel plans to merge Corus: Report

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Tata Steel plans to merge Corus: Report
New Delhi, Dec 15: A media report says that Tata Steel, India's largest steelmaker is planning to merge its British unit Corus with itself by 2009 to save cost upto 350 mn pounds. This move is likely to put thousands of jobs at risk. The Mail in its online edition said, "Corus, the former British Steel, is to be merged with its parent company, India's Tata Steel, in a move that puts thousands more UK jobs at risk."

The report said that the Corus merger puts jobs in trouble as Indian steel giant aims to cut costs in the Britain by 350 million pounds. Through this merger Tata Steel could become the second largest steel maker in the world after Luxembourg-based ArcelorMittal as per the report.

"News of the plan could undermine delicate negotiations in which unions are discussing accepting pay cuts of up to ten per cent for the workforce of 25,000, including the 1,000 workers at the threatened Llanwern steel works in South Wales," The Mail added.

Tata Group had acquired the Anglo-Dutch giant Corus Group Plc for $12 billion in 2007, pursuant to which Corus became a subsidiary of the Indian steel giant.

OneIndia News (With inputs from Agencies)

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