Reduction in manning configuration at Corus rail, Workington

19 May 2000

The Corus Rail Business has today announced a proposal to reduce the operating shifts in its rail manufacturing and finishing facilities located in Workington, Cumbria.

The proposal to reduce operating shifts reflects the severe downturn in export orders for the Workington plant, which is a consequence of:

• The continued strength of sterling which makes export business less viable, (exports traditionally comprise 70% of the total order load at the Workington plant);

• The declining trend in world demand for rail products;

• The Workington plant's inability to roll rail in excess of 40 metres to meet the increasing demand from European customers for the longer 'as-rolled' rail product;

A total of 168 jobs will be lost from the current manning of 400.

It is proposed that the job reductions will be achieved as soon as practicable.

Full consultation will take place immediately with the relevant employees and Trade Unions, and a comprehensive counselling programme will be provided to assist the employees who are affected.

Mr Paul Waterhouse, Managing Director Corus Rail, commented that 'The measures announced today are a necessary response to the severe competitive pressures confronting our rail mill in Workington. There is an urgent need to cut costs and improve productivity'.