Contact: Peter Black on 029 20 898744 or 07774 256123

Release: 18 July 2002

Assurances sought on Blast Furnace No 5

Welsh Liberal Democrat Assembly Member for South Wales West, Peter Black, has written to steel makers, Corus, to seek an assurance that their merger with Brazilian Steel Company, CSN, will not affect plans to re-build Blast Furnace No 5 in Port Talbot.

One of the benefits of the merger for the new company will be access to CSN’s iron ore mine at discounted rates and the fact that the CSN’s Brazilian plant can produce cheap semi-finished steel slab product for export. This may reduce the need to produce steel in the UK and the Netherlands in the long term if their plants become less competitive. Some concern has been expressed, as a result, of the long-term viability of re-building of Blast Furnace No. 5 at Port Talbot.

“There is no reason to believe that Corus intend to change their mind about re-building this blast furnace”, said Mr. Black. “However, any change produces uncertainty and so I believe it is necessary to seek assurances that their plans are unchanged. As a result I have written to the Chief Executive seeking his views.”

“The merger with CSN could significantly strengthen Corus and enable cost savings to guarantee the long term viability of steel jobs in South Wales. However, we must be aware of potential threats from the changed circumstances of Corus and seek to counter them.”

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