The investment will materially reduce carbon dioxide emissions at the site through the reuse of gas generated inside the Basic Oxygen Steel (BOS) plant.

Reducing the cost of energy has been identified as an important priority for the South Wales business to meet its challenge to compete on the global stage and work on the project has already commenced.

The investment is Port Talbot’s largest since Corus’ acquisition by Tata Steel in April last year. Says Acting Managing Director, Robert Bizzell, 'This is a significant vote of confidence by the Corus Board and also by our new owners. This investment will play a significant part in creating a sustainable steel industry here in Wales.' Similar plant technology exists at Corus' other integrated steelmaking sites at Scunthorpe and at IJmuiden in the Netherlands, as well as at Tata Steel's steel plant at Jamshedpur in India.

David Ferris, Chair of the Multi-Union in Port Talbot says: 'Not only is this great news for employees at the works, but there are great advantages for the community and the environment.'

Port Talbot steelworks’ current demand for energy is about 140 Megawatts (MW), about half of which is internally generated. Corus already recovers process gas produced in Port Talbot steelworks’ coke ovens and the blast furnaces. This gas is used to generate heat and power, which contributes to the energy requirement for the whole plant. Reducing Port Talbot steelworks’ external energy requirements makes a significant contribution to reducing the future energy requirement for South Wales in general.

NOTES

Corus Strip Products UK has invested over £400 million in the Strip Products plant in Port Talbot, Llanwern and Pontarddulais since 2002.Corus Strip Products UK directly employs 5,300 men and women in South Wales. A vital part of the local economy, a wide and diverse community of contractors are also involved in the industry.

Corus Strip Products has sites across Wales, including Port Talbot, Llanwern in Newport, Trostre near Llanelli, Pontardulais, Caerphilly, Caldicot, near Newport, and Shotton on Deeside. Corus is committed to supporting the communities in which it operates. It believes that areas such as health, safety, the environment and developing youngsters not only sustain good communities, but also are important for maintaining the best workforce for the future.

Annanya Sarin, Corporate Relations: Tel. +44 (0) 7717 4537

Robert Dangerfield, Corus Strip Products, UK: Tel. +44(0) 791 726 7795