Aluminium smelters

04 Dec 2007

Corus and AIAC (Aluminium Acquisition Company Limited) have today announced that they have signed a non-binding Letter of Intent for the proposed acquisition of Corus’ aluminium smelters by an affiliate of AIAC for an undisclosed sum.

Internal consultation and advice processes related to the transaction have commenced. It is intended that a Sale and Purchase Agreement would only be entered into once these processes are completed. The proposed transaction may be subject to certain external regulatory clearances.

Following the sale of Corus’ downstream aluminium extrusions and rolling business to Aleris in August 2006, Corus has been looking at opportunities to secure a future for its aluminium smelters outside the Group. The two smelters are based in Delfzijl in the Netherlands and Voerde in Germany and produce over 200,000 tonnes of primary metal per annum. The smelters employ 481 people in Germany and 475 people in the Netherlands.

ENDS

For further information, please call:  Annanya Sarin, Tel: +44 (0) 20 7717 4532.

Corus is Europe's second largest steel producer with annual revenues of over £10 billion and a 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. Corus is a subsidiary of Tata Steel, the world's sixth largest and second most global steel producer. With a combined presence in nearly 50 countries, Tata Steel including Corus has 84,000 employees across five continents.