Foreword 4.indd - Tata Steel

The magazine of Corus Strip Products UK
04
Corus changes the way it
manages its products
Zodiac gets hotter and faster
and adds dual-phase steels
Blagden Packaging makes it
better for the environment
How Caradon Plumbing and
Corus are creating a warm
feeling

Achieving success
As you will see in the interview with one of our new
product managers, Andrew Milner, the business
is focused on achieving success. This edition of
Foreword is very much about success—defining it,
working towards it and achieving it, not only for our
business, but crucially also for our customers and
others involved in manufacturing industry.
In the opening article on page 4,
Foreword interviews Andrew Milner,
one of three new product managers.
Responding to some tough questions,
Andrew talks about the new focus on
product management.
On page 6 there’s an article about the
planned Financial Shared Services centre
at Port Talbot in South Wales and how
that will affect customers.
Understanding our products and how to
use them is vital to achieving success in
new product design and manufacture.
The new literature shown on page 7
includes both basic and advanced data
on some of our high-strength steels.
The screen sales module on e-SURE
—a relatively new venture—has been a
great success. The main on-line order
management system that supports it has
operated for over fifteen years. Foreword
looks at the benefits of the latest version
of this system on page 8. The e-SURE
system was a regional finalist in the
Best Use of Technology category of
the National Business Awards last year,
which is an indication of how far the
system has come in that time.
Things are hotting up at the Zodiac
galvanising line, where a £4.4M
investment described on page 9 will
increase output and add new steels
to the range. This is part of a £212M
round of investments that aims to help
the business compete successfully and
deliver the products and services that
will help our customers to do that too.
As sponsor of Coventry University’s MA
Automotive Design show, Corus is proud
to celebrate the creative achievements of
what are likely to be some of the world’s
most talented automotive designers in
the future. Designs from the show are on
page 10. Some of the topics discussed
during the Automotive Industry Forum
hosted by Corus at the Design show
are included with this article, as well
as the result of the Best Production
Exterior category at the Interior Motives
Design Awards 2004—another Corus
sponsorship.
Success in manufacturing is rather
more complex than it used to be.
Environmental awareness has dramatically
changed the way manufacturers satisfy
the needs of their markets. On page 14,
Foreword looks at Blagden Packaging
to see the influence of environmental
considerations upon their finished
products and how our steel helps.
As an upstream manufacturer, we
understand that our success depends
upon that of our customers. On page 16,
Foreword speaks to Trevor Harvey, CEO
of Caradon Plumbing, about how Corus
and his company have worked together
to help create success.
The News in brief section on page 18
talks about the annual visit to Corus
of senior automotive industry figures
and tier-one suppliers and the Business
Commitment to the Environment and
Steel Business Briefing awards.
I would also like to mention the
appointment of a new Managing Director,
Phil Dryden, since we last published
Foreword. Nick Busby also joins us
as Commercial Manager, Transport,
which includes the yellow goods and
automotive sectors.
Success is something that has to be
re-defined often. As goals are achieved,
the bar is raised—or the market simply
raises it for us. We believe that we have
come a long way, but are working hard
all the time to improve our products
and services. The recent favourable
financial results of Corus and our positive
contribution towards them are further
signs of success.
If you have any suggestions about the
magazine, please let us know. I wish you
every success in the coming year.
Joe Vazquez
Commercial Director
Corus Strip Products UK

4 9 10 14 16
Contents
The magazine of Corus Strip Products UK
Commercial director’s brief
2 Achieving success
04
Corus changes the way it
manages its products
Zodiac gets hotter and faster
and adds dual-phase steels
Blagden Packaging makes it
better for the environment
How Caradon Plumbing and
Corus are creating a warm
feeling
Business update
4 Managing product success
6 All together now…
Service
7 Material information
8 A SURE thing
On the cover
Steel drums can be reconditioned, re-used
and recycled.
Product
9 Hotter and faster at Zodiac
Sector
10 Moving designs
14 Making it better
16 A warm feeling
News in brief
18 It’s good to talk
19 Award for ‘New Llanwern’
19 Commitment to the environment
Contact the Editor, Tim Rutter, at:
The Editor, Foreword Magazine
Corus Strip Products UK, PO Box 10
Newport, South Wales NP19 4XN
T: +44 (0)1633 755136
E: foreword@corusgroup.com
Foreword 3

usiness update
Managing
product success
With the appointment on 1 September last year of a product manager for each of the three main
product groups, Corus Strip Products UK introduced the concept of ‘product management’
to Corus. In an interview with Andrew Milner, the new product manager for coated products,
Foreword magazine finds out about this new management focus.
Bob: What exactly is product
management?
Andrew: Product management is
bringing together the sales, logistics,
manufacture, and development of our
products to achieve the greatest
possible success.
How will you be measuring success?
Principally, it’s financial value. Of course
we can only achieve that through
succeeding with our customers, so it
is as much about their success as it is
about ours.
Wasn’t the business always trying to
maximise value?
Certainly, but within discrete product
areas, no one has been looking at
gaining the greatest possible value
from the product.
How is that going to be done in
practical terms?
The approach is to run each product area
as a virtual business. Each product line
team has a member from manufacturing,
logistics, commercial and finance. That
amounts to a small management team
for each product. These teams will look
after all aspects of the ‘life cycle’ of
their products.
In the short time that we’ve been in place,
we’re beginning to see things that hadn’t
been seen before. And I’m sure that
product management will develop over
time. In a couple of years, it will no doubt
look different from how it does now.
How much emphasis is going to be put
on maximising value from products?
It’s in our interest and our customers’
interest that we be profitable, so the
profitability of products will be a primary
focus for us. It is only by being profitable
that we can invest in new technology and
new products.
We’ll also concentrate on maximising
value through the supply chain, looking
for things we can do throughout the
process to help our customers save
time and money and compete more
effectively.
So you’ll be looking closely at the
products the business makes?
We aim to produce 4.7 million tonnes of
slab a year and the choice of what end
products we make with that will play a
big part in how profitable we can be.
We’ll be looking after the ‘here and now’
to make a better return on the products
that we have and we’ll be looking after
the future through product development.
What about products that are not
particularly profitable?
We have to look closely at why that
is the case. Is it because we’re not
manufacturing them cost effectively or
that the market price isn’t reflecting their
value mix?
Some products are difficult to make and
therefore cost us more, but they perform
at a very high level and contribute a lot
to the performance of the customer’s
finished product. Those products, too,
need to be profitable for us.
Will product development still be
important?
Of course it will. Some of our products
are in their infancy and others are quite
mature. New products that anticipate the
needs of our customers are vital. I’d like
to think that product development would,
if anything, be enhanced. It will certainly
be more focused.
I understand the concern that some
customers might have about the focus on
products. However, one thing is certain,
which is that no matter how attractive
products may look to us, they must be
attractive to the customer also. Product
management doesn’t undermine the fact
that we still have to sell our products
to our customers. The new focus will
complement what we already do.
Most of our customers are operating in
particular markets that have their own
needs. Is the business abandoning the
market sector approach?
No, we’re not. Our sales team is still
organised by market sector. The close
links we have with our customers will
remain. Our business development
managers play a part in the product
line teams, which are part of product
management.
Will you and the other two managers
be seeing customers?
We wouldn’t be doing our job if we
4 Foreword

sector
didn’t. We need to know where their
business is going if we’re to make the
right product choices. We won’t be
replacing our commercial colleagues, but
we’ll be in there with them from time to
time, talking to customers. For example,
where do our customers want to see a
competitive product in five years’ time?
We need to know that.
Part of our role is to look at where
we can cut product costs to remain
competitive. This includes taking costs
out of the supply chain too.
Is there, through product management,
an opportunity to secure more
investment?
Yes, because part of our job is asset
development, making the best possible
use of our assets. That’s about existing
assets, both the liquid steel we make
and the plant to process it, and about
investing in new assets. It’s about what
we should make now and in the future.
What effect will the product managers
have on service?
Service is one of the three keys in the
Chief Executive’s [Philippe Varin’s] plan
for restoring success to Corus and it is a
priority for everyone in the company.
The Service Delivery programme aims to
establish reliable delivery and shortened
lead times. The e-SURE system lets
customers track their orders, access
documents and view their accounts. It’s
all about service. Our customers have
individual account managers and access
to our Customer Technical Services
for help and advice. The emphasis
on products should strengthen these
activities.
What do you think you personally bring
to this job?
I have a strong financial background,
which should help me understand how
to maximise value from my product
group. Having said that, I am by nature
a customer-orientated individual and
I think my experience in managing
manufacturing and distribution
businesses will help me understand the
customer’s viewpoint.
I should say something about my two
colleagues. Phil Clements, who’s the
hot-rolled product manager, has a very
strong technical background. Ashley
Wilkinson, the cold-rolled product
manager, has significant experience in
other businesses and recently in market
development.
How far do you think the three of you
will work as a team?
We’ll certainly share our expertise and
insights, but it is fundamental to our
success that we work together since,
for example, the substrate that is being
coated in my product group will have
been hot-rolled and cold-rolled in their
product groups. I think that is bound to
improve what the customer gets because
our success is mutually dependent.
How long before customers see the
effect of product management?
Total product success involves many
deliverables, both internally and
externally. Reducing complaints and
increasing delivery in full and on time are
two of the more important ones. I think
it will be progressive. The bottom line
is, if we improve the aspects that we’re
looking at, then the customer will see
things improve. We have targets and we
aim to hit them.
Foreword 5

usiness update
All together
now…
Corus began centralising its financial services in April this year in a move that will see a
single Financial Shared Services centre in Port Talbot, South Wales, for all UK businesses
by March 2006.
Corus Strip Products UK is one of
several businesses that will conduct a
range of financial services from the new
location, including accounts receivable,
travel and expenses and payroll.
“Customers of Corus will benefit from
the move”, said Commercial Accounting
Controller, Danny Jones. “The new
centre will adopt industry best practice
and will use modern processes to
provide customers with access to
consistent and reliable information.
Everyone here is committed to giving
our customers a responsive, highquality
service.”
One of the key benefits will be the
creation of a single point of contact
for financial queries. Jones continued:
“Combining services in this way will
enable us to serve our customers more
effectively, routing their calls more
precisely and fielding enquiries about
invoices, payments and related matters
in a much more efficient way.” Financial
services have previously been held in
a large number of locations around
the UK.
The move is seen as part of Corus’
Restoring Success initiative, which has
played such an important part in the
recent recovery of Corus to profitability.
Jones concluded: “The move to Financial
Shared Services opens up a new era,
both for Corus and its customers and for
some of its other accounting contacts.
Accounts receivable is the area that
is most visible to our customers, but
efficiency for us in other financial
services, both internally and externally
is vital to our overall competitiveness.
This move represents just one more area
in which Corus is striving to become a
service leader.”
Enquiries and correspondence should
now be routed through the new centre,
which operates between 0800 and 1800
hours and whose location and contact
details are shown below.
Customers need to be aware of these
new contact details, although there
will be no changes to any of the bank
accounts currently in operation for any
of the business units in this first move.
They are:
• Corus Strip Products UK
• Corus Colors
• Corus Narrow Strip
• Corus Packaging Plus UK
• Corus Construction and
Engineering Products
• Cogent Power Limited
The new centre is at:
Corus Financial Shared Services
Commercial Accounting Department
PO Box 106
Port Talbot Works
Port Talbot
West Glamorgan
SA13 2NG
T: +44 (0)1639 605300
F: +44 (0)1639 605301
E: fss.commercial.accounting@
corusgroup.com
6 Foreword

service
Material
information
Corus Strip Products UK has published three more data sheets about high-strength steels,
containing basic and advanced properties for these technically enhanced products. The
business has also published a revised price list effective from 3 April 2005.
Corus Strip Products UK
Corus Strip Products UK
Corus Strip Products UK
Corus Strip Products UK
Galvatite hot-dip galvanised steel
Tenform XF350
Tenform hot-rolled high-strength
formable steels
Price list for strip products
Tenform H220BD high-strength bake hardening steel substrate
Hot-rolled high-strength low-alloy steel
Tenform XF, XK and CMN
Effective 3 April 2005
High-strength, bake
hardening Galvatite
Galvatite hot-dip galvanised
steel on a Tenform H220BD
high-strength bake hardening
steel substrate is suitable
for automotive closures and
body-in-white structural
components. The steel starts
with good ductility, which
allows it to be pressed
into complex shapes, and
increases in strength after
being heated in the paint
stoving process. Body panels
made from Tenform H220BD
therefore have improved
dent resistance.
Tenform XF350
Tenform XF350 is hot-rolled
high-strength low-alloy steel.
Its applications include
automotive chassis and
underbody components,
warehouse shelving, and
building and construction
components. It shares the
benefits of other high-strength
steels in adding strength or
reducing steel thickness, or
both, and thereby creating
opportunities to increase
output per tonne, reduce
weight and increase safety
under load.
Tenform hot-rolled highstrength
steels
Tenform hot-rolled highstrength
formable strip steels
are available in a range of
strengths, forming capabilities
and steel characteristics.
The XF range has excellent
formability. Tenform XK
steels combine high-strength
and good formability for
cold-formed applications
that have less demanding
forming requirements.
The CMN range is carbon
manganese steel with a twophase
microstructure for the
most difficult cold-formed
applications.
Corus Strip Products UK
price list
The new Corus Strip Products
UK price list shows the
updated basis prices for the
main products, plus some
minor changes to other
information.
Where to get them
These publications are available from the Corus web site
either as downloadable PDFs or as hard copies that will be
sent by post on request. To access these publications and
others, visit the publications page of:
www.corusgroup.com/stripproductsuk
In the UK, publications are also available by calling
0800 0563365.
Foreword 7

service
A SURE thing
When Corus first implemented its Supplier Responsiveness (SURE) technology over fifteen years
ago, it was a breakthrough that gave customers online access to information about the progress
of their orders in the steel manufacturing process. The latest generation of the system, e-SURE,
gives customers access to a wider range of information through simple Internet technology.
The popularity of ‘screen sales’—which
allows customers to purchase despatchready
coil and sheet from a screen
sales module of the e-SURE system—
continues apace. Here we look at the
other benefits that the system provides
for customers.
Mike Mitchell, Senior Business Analyst,
outlines the current state of play:
“All customers of Corus Strip Products
UK and Corus Colors have access to
e-SURE, with over 1000 individual
identities already assigned. The take-up
has been fantastic, especially end-users
in the drum, radiator and tube sectors.
However, I’m sure that most customers
could benefit more than they do already
from the current system.”
“The great thing about e-SURE is
that different users can access the
same information by using a variety
of references such as customer order
number, contract number and part
number. We see e-SURE as a valueadded
service that differentiates us
from our competitors. That’s why we’ll
continue to concentrate on developing
the accuracy, speed of response and
ease-of-use of the system to benefit
our customers.”
Information 24/7
The key to the success of the orderprogress
system is 24-hour access to
the latest information 7 days a week.
Users can view their orders by product,
tonnes, order number, part number or
specification. The progress of orders in
the manufacturing route is updated every
night. The status of material in despatch
is updated every 10 minutes.
One long-standing customer that has
seen tremendous benefit from e-SURE is
Tyco Tubes, whose Commercial Manager,
Andrew Manlove, said, “When checking
the progress of material, we rely on
e-SURE more than our own system! It
gives us all the information we need from
the point of order right up to despatch
and we can access information on all
shifts, which in turn helps us plan our
own manufacturing.”
Present and past
Customers have a ‘real-time’ view of
the Corus despatch bay. A click of a
mouse shows not only which material
is pre-consigned, which is loaded
and which has been despatched, but
also the haulier and the lorry. Corus
plans to develop the system to include
an estimated time of arrival at the
customer’s site.
At the press of a button, customers may
also view details (such as chemistry) of
material despatched up to 12 months
previously.
Call-off
Those customers that have specific
‘Just-In-Time’ arrangements or those
with transit stock are able to access and
schedule their deliveries on a daily basis.
Concession answering
If a customer order is produced slightly
outside specification but within the
possible limits of usability, a prompt
appears on the ‘Welcome’ screen asking
whether the material is acceptable. As
a reminder to the customer, prompts
continue to appear until a decision
is made. The material can then be
either despatched or scheduled for remake.
Corus is looking to introduce a
regular prompt across different screens
to increase the visibility of these
exceptions.
Test results
When coils reach the despatch area, a
chemical analysis of the material and
a set of test results become available
online. If the order is not due for further
processing (such as slitting) before
8 Foreword

product
delivery to the customer, a formal test
certificate is also made available online.
This gives customers extra time to
optimise their own processing facilities.
Better all the time
Mitchell is positive about the adaptability
of e-SURE. He says, “The features and
navigation in the system are flexible. In
fact, we’ve conducted some informal
research to find out which screens
people find most useful, so that we can
improve access to that information.
We’re also looking at ways to improve
the speed and structure of the system
based on actual usage and users’
navigation paths. We’ve had very
positive feedback from customers who
are reaping increasing benefits from this
interactive technology”.
Getting connected
If you don’t use e-SURE but think it
could benefit your company, contact your
account manager for more information.
One of the best
The e-SURE system was a regional
finalist in the Best Use of Technology
category of the National Business
Awards.
Sponsored by Orange, the
competition is designed to promote
and showcase excellence throughout
the British business community.
As a finalist, Corus presented the
merits of the e-SURE system to a
panel of independent judges.
Joe Vazquez, Commercial Director for
Corus Strip Products UK, said, “We
aim to provide first-rate customer
service and e-SURE is an outstanding
example of how technology can be
used effectively to support this aim.”
Hotter and
faster at
Zodiac
The Zodiac hot-dip galvanising line at Llanwern will produce
20% more galvanised steel and add dual-phase steels to
its capability after the recent completion of a £4.4 million
investment to increase its thermal capacity.
First commissioned in 1990, Corus’
Zodiac line produces galvanised strip
steel for the automotive and construction
industries. Over the years, those
industries have demanded increasing
amounts of hot-dip galvanised steel and
that looks set to continue.
Commenting on how the investment
will help increase output while
maintaining excellent quality, Stephen
George (right), works manager at
Corus Strip Products UK, said: “The
major enhancements have focused on
increasing the thermal capacity of the
line in order to heat the strip to required
temperatures at an increased line
speed, therefore allowing us to process
more material. Specific work has
included extending the pre-heat section
of the existing furnace, replacing
burners and upgrading the cooling
section of the line to ensure consistent
cooling rates. These enhancements will
significantly increase the strip speed
through the annealing furnaces allowing
us to enhance output by around 20 per
cent to help meet forecast increases in
demand from our customers.”
The investment also provides Corus
with the capability to produce a range
of dual-phase steels, increasingly
demanded by vehicle manufacturers
because of their crash performance
and weight benefits.
The major advantage of dual-phase
steels is that they offer vehicle
manufacturers a good balance between
strength and formability. Importantly,
dual-phase steels also demonstrate
a positive response to strain rates,
critical to the crash performance of the
material in a vehicle during impact. By
offering better crash performance for
less steel, dual-phase products can
also enable designers and engineers to
take weight out of a vehicle and thereby
help improve fuel economy and vehicle
performance.
The increase in the thermal capacity of
the Zodiac line is not just about speed.
The annealing process (heating, holding
and cooling of the strip) on any line
Foreword 9

product
sector
plays a critical role in determining the
mechanical and metallurgical properties
of the finished material.
Mr. George continued: “Importantly,
increasing the thermal capacity of the
line will result in fewer changes to the
furnace temperature and environment,
and will mean that more strip can go
through in a similar profile, helping to
ensure a consistent product with more
uniform metallurgical properties.”
Investments like Zodiac demonstrate
Corus’ commitment to the changing
needs of its customers.
Moving
designs
Coventry University’s end-of-year MA Automotive Design show
challenges the automotive industry to put excitement back into
vehicle design. Corus, showing its long-term commitment to
design in the automotive sector, sponsored the show once
again this year.
Investing for the future
The current round of investments
in Corus Strip Products UK will
increase production this year by 25%,
strengthen the raw materials position
and help make the business more
cost-effective. These investments
provide a solid foundation for
delivering high-quality, competitive
strip steels to Corus’ customers.
Investments £M
Heavy end 79
• Caster
• Turbo blower
• Secondary steelmaking
Coke ovens 50
Sinter plant 18
Coal injection 19
Basic oxygen steelmaking 7
Slab yard and re-heat furnaces 19
Pickle lines 8
Zodiac 4
Power plant 8
Total 212
Design plays a vital role in society,
combining form with function to
express who we are. It often has to
please us in practical terms and excite
us emotionally at the same time. How
well it achieves this determines the
commercial success of many if not all
products today.
Designers are designing for
performance, appearance, safety,
ergonomics and the environment—and
for excitement too. All of these areas
require knowledge of how materials will
perform in use. This is where Corus’
strength lies. The company supports
activities across a variety of market
sectors to bridge the gap between
advanced metal engineering and
leading edge product design.
Coventry University’s MA in Automotive
Design is one of the most respected
courses across Europe. Students from
the Design School continue to win
awards across the world. This year’s
show—themed Move—demonstrated
the imaginative force of the twenty-one
international students on the course.
Charles Drury’s God is in the details,
but nobody saw Him coming concept
won Best Vehicle Design, awarded
by a distinguished judging panel that
included Kevin Rice, project manager,
BMW 1 series design.
Furnace burner checks being undertaken.
Matthew Spindler’s display
10 Foreword

sector
Rohit Kulkarni’s display
Charles’ concept looked at modern
disenchantment with the car and asked
the important question: “Has the industry
lost its magic and, if so, how can it get
it back?”
Jon King, director of Corus Automotive
and chair of the judging panel, said:
“The judges were very impressed with
the overall high standard of concepts on
display this year, making the decision to
select our three prize winners very difficult.
However, Charles’ complete portfolio of
excellence demonstrated a deep level
of thinking, which was technically well
researched and executed.”
Kevin Rice added: “The pressure to
design reliable, competitive products
that meet the ever increasing demands
of legislation has led to a similarity of
design in many new vehicle models. It
was great to see an idea that challenges
the industry to put excitement back into
automotive design and Charles’ concept
is a valuable reminder to us all not to
forget that emotion plays an important
role in the minds of consumers.”
The multi-cultural backgrounds of the
young designers strongly influenced
many of their design choices, including
a vehicle inspired by the art of Oriental
calligraphy.
Chris Johnson of Coventry University
commented: “The projects do not focus
on any one vision for the future of
automotive design, but on a collection
of possibilities. Some may come to
pass within the next five years, while
others may take longer to be realised.
The students’ inspiration has been ‘take
nothing for granted, just let ideas and
concepts flow’”.
Johnson continued, “The MA Design
Show is a great way to end what has
been a very successful year for Coventry,
which saw our students first and second
overall grand prize winners at the World
Automotive Design Competition, with the
university itself awarded the prestigious
title, Best Design School.”
Jon King concluded: “By partnering an
institute at the forefront of innovation in
European automotive design, Corus can
create a platform to better understand
the needs and wants of young designers,
which can impact the future material
solutions being developed within the
company”.
Adrian Seller’s display
Foreword 11

sector
Automotive Industry Forum
For the fourth consecutive year, Corus hosted an international industry forum to coincide with the
MA Automotive Design show. An expert panel represented a cross-section of the industry.
Foreword can give only a very selective
taste of what was discussed at the
Forum. Here are just some of the issues.
The panel and the audience discussed
the vital part that styling plays in selling
a car.
BMW’s move from traditional styling to
the more dynamic styling of some recent
models signals a controversial decision
by the company to give some cars their
own styling direction and define the
family more loosely.
The BMW Mini was cited as a good
example of a car whose development
and marketing was fashion-led, despite
other virtues such as its excellent
handling, for example.
But of course styling does not have
a free hand. The Forum recognised
that one of the greatest challenges
to engineers and designers is to
embrace the foundations being set by
environmental and safety legislation.
Customers, though, continue to demand
more extras and frequent model
changes. Studies show that the most
successful carmakers are those with
young model ranges, typically about
three years on the market.
The Forum observed that cars were
generally getting bigger and that
there was no legislation bearing upon
carmakers to do that—quite the reverse,
in view of the increasing attention upon
CO 2 emissions.
One solution to reducing emissions is to
use a fuel that does not produce them.
‘Enter’ hydrogen fuel cells. Dr. Paul
Nieuwenhuis thought that on present
knowledge, the basic calculations
suggest that it would be 2050-2060
before the majority of cars could be
hydrogen fuel cell powered. The forum
acknowledged that the most likely result
would probably be a combination of
technologies working together, both
Panellist Steve Cropley, Editor in Chief, Autocar
magazine
simple and complex, short and longterm,
to tackle emissions.
With all this pressure on them, carmakers
are putting an increasing amount of
the responsibility for differentiation on
suppliers. Early collaboration between
suppliers and carmakers is becoming
common, with collaboration moving right
back to the concept stage.
Near the end of the Forum, the panel
asked design students whether or not,
in view of all the forces operating to
restrict designers, there was any freedom
left to design something different. The
answer was an overwhelming ‘yes’,
based principally on the belief that the
greater the challenge, the greater the
force for creativity.
Balaji Rengarajan’s display
Panellist Dr. Paul Nieuwenhuis, Deputy Director,
Centre for Automotive Industry Research
However, the customer, as usual, will
always have the last word, a position
articulated best by Steve Cropley earlier
in the Forum:
“You can have a great car from an
attribute stand point… but if it doesn’t
excite people, it won’t sell”.
Other Forum panel members:
Kevin Rice, Project Manager BMW 1
Series; Steve Ross, Director, Product
Development Landrover, and Corus’
Director of Automotive Engineering,
Richard Jones.
If you would be interested in attending
the 2005 Forum, which is likely to be in
December, please contact:
emotion@corusgroup.com
12 Foreword

sector
First impressions of the
Design Show
“My first experience of the Design
Show was illuminating. It generated
a night full of energetic discussion
about design creativity versus material
performance. The show highlighted
the gap between what designers can
imagine and what material suppliers
can produce for mass production
vehicles. Clearly the challenge for the
material suppliers is to catch up with
the imagination of designers, whilst
for designers the challenge is to work
within a practical budget to make
a vehicle.
Exterior Motives
Corus sponsored the Best Production Exterior category at the
Interior Motives Design Awards 2004, which were held during
the Paris Motor Show.
Over 500 leading figures from the
automotive design community attended
the event at the Le Cab nightclub.
Fengyou Gong’s winning entry is shown
below. More information is available at:
www.interiormotivesawards.com.
Congratulations to Corus and the
students for providing such a mentally
stimulating spectacle.”
Phil Tonks, Raw Material Manager,
Honda Trading Europe.
“I thought the show was excellent and
very informative. It is encouraging to
know that the world’s best automotive
ideas are coming from the UK.”
Gareth Jones, Divisional Director,
Sebden Steel Service
Centres Limited.
Fengyou Gong, Pforzheim University of Applied Scineces, Pforzheim, Germany
Byung Kang Cho’s display
Foreword 13

sector
Making it better
Environmental awareness has dramatically changed the way manufacturers satisfy the needs of
their markets. Foreword looks at this change and at one manufacturer, Blagden Packaging, to
see the influence of environmental considerations upon the finished product—in this case, the
steel drum.
The wants of society have for a long
time been bumping up against the wellbeing
of the planet, with society’s wants
generally winning out—until relatively
recently. The evidence that society is
using the world’s resources unskilfully is
all around us. And yet those resources
are the very basis of the economic and
social development that civilisation has
pursued since its inception. It is clear
that the world’s capacity to support such
development is limited.
Recognising this, people and
governments are acting to change the
way we use the world’s resources. That
change is described as ‘sustainable
development’, a principle put on the
international agenda in Our Common
Future (The Bruntland Report), which
arose from the 1987 World Commission
on Environment and Development. In
that report, sustainable development
is defined as “development which
meets the needs of the present without
compromising the ability of future
generations to meet their own needs”.
This principle has since been
incorporated in legislation and in
the policies of many companies and
is changing the way manufacturers
operate. Blagden Packaging includes
in its mission statement the aim to be
“an environmental good citizen”. The
company offers products and services
that satisfy the needs of its customers as
well as environmental legislation.
Performance first
Apart from environmental considerations,
steel drums have to meet demanding
performance requirements.
The steel drum is a mature product
that has stood the test of time. Being
made of steel, it is functionally and
environmentally very successful. It is the
preferred package for many products and
industries across the world. Its shape
makes it easy to handle and it performs
to the very highest standards, for which
it is rigorously tested to criteria set by
the United Nations. These tests demand
that drums are leak proof, easy to stack,
vacuum and internal pressure-tight, and
resistant to rupture when dropped, as in
a fall from a lorry. Steel drums need to
offer varied levels of strength, depending
upon the specific gravity of the intended
contents and the journey. For example,
drums made from thicker steels are
better able to withstand long journeys
that may involve multiple handling or
unstable transport, or both.
Because drums may contain many
possible substances, they must be
available with removable lids for packing
powders, greases, pastes, paints and
14 Foreword

sector
resins, or with tight heads for packing
liquids. Both the inside and outside
surfaces of drums contribute to their
performance. Purpose-designed lacquers
give the insides of drums chemical
resistance. Integral polyethylene liners
are available for hazardous products.
And of course, the drum needs to be an
economic container.
The design and manufacture of the steel
drum together with the material from
which it is made give it its virtues.
Making it better
With forty years of experience,
Blagden Packaging is designing and
manufacturing steel drums to the highest
technical and quality standards. Steel is
an ideal material for drums. Its inherent
strength, weldability, formability and
dimensional stability are the perfect
combination for both its manufacture and
its use. The variety of steel thicknesses
available offers a choice of strength and
rigidity according to the use of the drum
and its typical journey.
Because steel can be coated, users can
obtain drums with interior coatings, if
necessary, and drums painted in their
own livery. High-quality steel from Corus
combines with Blagden Packaging’s
manufacturing and service excellence to
produce not only a functionally superior
product, but also one that can meet
the requirements of legislation aimed
at sustainable development.
For the environment
Environmentally, drums are subject to
the European Directive on Packaging
and Packaging Waste, which the UK
government transposed into UK law as
the Producer Responsibility Obligations
(Packaging Waste) Regulations 1997. The
regulations apply to any UK business
that manufactures, fills or sells packaging
or packaging materials in excess of 50
tonnes per year and that has an annual
turnover in excess of £2 million.
The regulations also require each
company to have a specific, quantified
recovery target, which depends on the
weight of material handled, expressed
as a percentage of turnover, and the
company’s ‘activity’. For example,
Corus as a maker of raw materials for
packaging must recover 6% of the
weight of material handled, whereas
Blagden Packaging must recover 9% of
the weight of the material it handles.
Companies subject to the regulations
must register with a compliance scheme
or with government agencies to provide
data on the total tonnages of packaging
handled for UK consumption. Packaging
chain companies are obliged to hold
Packaging Recovery Notes (PRNs) as
evidence that their legal responsibility to
recover and recycle has been fulfilled.
Companies like Corus, which can
recycle, and other re-processors, sell
PRNs either to an obligated company
or to a Compliance Scheme Activity on
behalf of that company.
The part steel plays
Steel, which is one of the world’s most
recyclable and recycled materials, has
excellent environmental credentials.
Approximately 40% of the world’s
production of ‘new’ steel is made from
recycled steel. Recycling steel scrap is
fundamental to basic oxygen and electric
arc steel making processes, the latter
process using 100% scrap. Steel used for
drums will typically contain 18-25% scrap
steel. In 2004, Corus in the UK purchased
1.4 million tonnes of steel scrap externally
from scrap merchants. When Corus’ own
internal scrap and that prompted from
customers are added to what it buys, the
company recycles more steel by weight
than anyone else in the UK.
The ability of the steel drum to be
reconditioned and re-used before it is
recycled sets it apart from its plastic
alternative. It also benefits from an
effective, well-established reconditioning
and recycling infrastructure.
Closing the loop
Blagden Packaging meets its
environmental obligations through addedvalue
services that recover, recondition
and provide for the recycling of steel
drums. The company collects used
drums and supplies reconditioned ones,
making repeated use simple and costeffective.
This Closed Loop® system
allows Blagden Packaging’s customers
to fulfil their environmental duty of care
by ensuring that all packaging that is
released into the environment is filled,
delivered, emptied, collected and
recycled within a single integrated and
accountable network. In addition, the
internal and external coatings applied
to drums comply with environmental
legislation governing the use of heavy
metal pigments and volatile organic
compounds. Blagden Packaging’s
expertise in the environmental area
means that it can also offer consultancy
services to drum users.
The right choices
Society’s recognition of its effect on
the world in which it lives and, more
significantly, its response, have been
slow—over thirty years since the UN
Conference on the Human Environment
and seventeen years since the concept
of sustainable development was brought
to international attention.
However, the influence of sustainable
development upon all aspects of human
life—particularly on the resources and
methods that we use to develop our lives
and our society—will unquestionably
accelerate. There are some hard
choices ahead.
Drums are a well-established part
of industry and commerce. Their
manufacture from steel and their
progress through reconditioning, reuse,
recovery and ultimately recycling
to become new products is a cycle that
supports sustainable development.
Every time a tonne of steel drums is
eventually recycled, it saves*:
1.5 tonnes of iron ore
70% of energy
0.5 tonnes of coal
40% of water required in production
Steel drums make it better.
* Association of Drum Manufacturers,
now under the wider representation of
the Industrial Packaging Association
(IPA), which includes all aspects of
industrial packaging.
Foreword 15

sector
A warm feeling
The potential rewards of companies working together on product and application development
and on environmental and legislative issues have never been greater. Through just this sort of
supply-chain activity, Corus is striving to become a service leader to customers across a range
of sectors in the UK. Corus’ work with Caradon Plumbing is a good example.
Foreword speaks to Trevor Harvey,
CEO of Caradon Plumbing, about how
Corus’ technical support and account
management, as well as initiatives
such as e-SURE, have improved the
relationship and hence the rewards for
the two companies.
How would you describe your
relationship with Corus?
We have an excellent relationship with
Corus that has been built up over
many years and continues to thrive,
even in today’s challenging market
conditions. Strong business relationships
are based on people. We’ve always
found the people at Corus to be highly
knowledgeable, easy to deal with, and
willing to share their knowledge and
expertise. They take the trouble to help
us with our products, our manufacturing
and our development.
What is it that Corus offers that you
find most valuable?
We buy continuously-annealed coldrolled
strip from Corus, which we use in
single, double and finned radiators. The
metallurgical and mechanical properties
of that product give us a very reliable
seam weld, which helps to reduce leaks.
Consistency is also key to our process.
Corus is able to produce material
consistently at the lower end of our
thickness tolerances together with coil
weights close to our optimum weight.
This means we can minimise coil changes
on our welding line and maximise the
efficiency of our slitting process.
We also take advantage of the Corus online
order-progress facility, e-SURE (see
page 8), which helps us plan our own
scheduling.
16 Foreword

sector
Is Corus involved in product and
application development for you?
Corus gives us a lot of support,
especially in our welding operations
and development. Their engineers are
a regular feature of our workplace,
conducting welding surveys and helping
us optimise our settings to achieve
the highest possible product quality.
Our Benelux operations have started
using Corus’ new Ymagine direct-sheet
product from IJmuiden as an alternative
to cold-rolled steel
As with every other manufacturer,
efficient use of materials is a high priority
for Caradon. We continually aim to make
better, stronger, more reliable products
with the most efficient use of materials.
Corus has put in a huge amount of effort
and expertise over the years to help us
achieve this and they continue to do so.
What about environmental support?
Aside from the ongoing work to reduce
the amount of materials and energy
used in the manufacture of radiators,
we have an arrangement with Corus
to remove all plastic packaging before
coils are delivered to our UK sites. This
removes our own liability for recovery
and recycling under the Packaging
Waste Directive, while allowing Corus to
dispose of the material responsibly and
efficiently. Corus also understands the
environmental importance of the surface
cleanliness of the steel they supply.
A large part of our operations involve
welding, with the potential of producing
pollutants. Welding smoke has been
substantially reduced as a result of the
work between us.
How may a supplier such as Corus
help you grow and prosper?
We believe there are still opportunities to
reduce costs through the supply chain in
many areas, including materials, and we
continue to seek support from Corus in
achieving this. Advances in materials and
manufacturing technology should help
to improve our efficiency and improve
the performance of our products in use.
Corus has gained a lot of expertise from
working in other market sectors. We
think we can benefit from Corus applying
the latest tools, technologies and supplychain
management to our products
and markets.
We see ourselves as European leaders
in steel panel radiators. To maintain that
position, we depend on suppliers that
have a similar business perspective. We
need not only consistent, high-quality
products and services from them, but
also cost efficiencies and added value to
help us compete even more effectively.
A strategic account
Adrian Clarke, account manager at Corus
Strip Products UK, understands the
long-term importance of Caradon as a
strategic account in the radiator sector.
“Caradon is our longest held account
in this sector and continues to be one
of the leading players in the European
market. We work with their European
operations in Nuth in the Netherlands,
Herentals in Belgium and Mexborough
in the UK. We’ve worked closely with
Caradon on a host of value-add activities
that have strengthened both of us.”
“As well as ongoing technological
co-operation, we’ve yielded benefits
from initiatives such as the use of
wider coils for 3-width slitting, and
stock management for better delivery
performance.”
Clarke concludes, “We believe that
Caradon is an excellent long-term partner
with a sustainable business. Although
there is considerable competition from
decorative radiators and alternatives
such as under-floor heating, we believe
the market for panel radiators is still
strong. In the UK especially, there is a
massive programme of re-investment in
health and education that involves the
replacement of wet heating systems. The
market for LST (low surface temperature)
heating is also growing for schools and
old people’s homes. These activities
should provide extended market
opportunities for future growth”.
Foreword 17

news in brief
It’s good to talk
In what has become an annual event, senior automotive industry figures and tier 1 suppliers
to the automotive industry visited Corus Strip Products UK in September and exchanged
views on a variety of issues.
Tony Jones, Corus’ Director of Product
and Market Development, started the
day by presenting the improvements in
business performance and the benefits
that will come from investments in
steel making and casting. Jones also
outlined product, service and technology
initiatives. The visitors were able to see
for themselves the work ongoing in steel,
slab and hot rolling areas.
Later, key customers and senior industry
figures debated the latest automotive
and manufacturing issues with Corus.
Representatives from the Department of
Trade and Industry, Welsh Automotive
Forum and LMC Automotive Services
provided their views on issues in the UK
automotive sector.
At a dinner In the evening, there was
another chance to talk, followed by a
speech from Duncan Pell, Corus’ Director
Commercial Coordination, who reiterated
the effects that rising raw materials,
energy and transport costs were having
on global steel availability, demand and
prices. Pell said, “In real terms, the cost
of steel is 30% less than it was 30 years
ago. Historically, tier 1 suppliers have
benefited more than OEMs, and that
price imbalance is now starting to be
redressed.”
Key automotive customers weren’t happy
about continued steel price rises, but
understood the reasons behind them.
They valued the opportunity to find out
first hand what Corus is doing to reduce
its cost base. Continuing to talk regularly
with suppliers like Corus and to maintain
strong supply-chain links was important
to them.
Visitors were able to see the work ongoing in steel, slab and hot-rolling areas.
Key customers and senior industry figures enjoyed the opportunity to talk over their key issues.
Guest speaker Arthus Maher, Head put a price on this sort of event. It is
of European Forecasting at LMC
immensely valuable to get away from the
Automotive Services, followed Pell office and talk about the critical issues
with an insight into some of the future for our customers and the industry in
potential changes within the European the UK and abroad.” He continued, “We
car industry. His thoughts created
place huge importance on the automotive
huge interest and started debates that supply chain. Unless a business
continued long into the small hours of understands that chain completely, it
the morning.
cannot hope to add value effectively. I
think we are all looking forward to next
Joe Vazquez, Commercial Director for
year’s event!”
Corus Strip Products UK said, “You can’t
18 Foreword

news in brief
Award for ‘New Llanwern’
Jon Ferriman, Works Manager, Hot Rolled Products, at Corus’ Llanwern works was awarded
the UK Steel/Steel Business Briefing Award for Achievement in the Steel Industry at the UK
Steel Annual Forum and Lunch in London at the end of last year.
In presenting the award, Patrick Flockart
of Steel Business Briefing said: “Since
Llanwern Works stopped making liquid
steel in June 2001, it re-invented itself
as ‘New Llanwern’. Jon and his team
have been instrumental in the success of
‘New Llanwern’ and the financial benefits
they are producing for Corus have been
made possible by the close co-operation
between management and unions.”
Speaking about the award, Jon Ferriman
said: “I was delighted to receive this
award on behalf of all Corus employees
at Llanwern. It is much deserved
recognition of our recent achievements
in making ‘New Llanwern’ a more
competitive and flexible operation and
it is the result of excellent co-operation
between management, unions and staff.”
Since liquid iron and steel making ended
at Llanwern in June 2001, the plant has
focused on manufacturing hot-rolled,
cold-rolled and hot-dip galvanised
steel coils using steel slab feedstock
produced at the Corus works in Teesside,
Cleveland. From mid-2005 onwards, steel
slab for the Llanwern operation will be
provided by its sister plant in Port Talbot
once the £79 million investment in a third
continuous caster is completed.
The Chief Executive of Corus, Philippe
Varin, congratulated Jon on the award,
commenting: “The award was welldeserved.
The turnaround in Llanwern is
a credit to you and your team.”
Jon Ferriman (left) receiving the UK Steel/Steel Business Briefing Award for Achievement in the Steel
Industry from Pat Flockhart.
Commitment to the environment
Corus has gained a Premier Award in the Business Commitment to the Environment scheme.
Corus’ commitment to sustainability and
environmental best practice has been
recognised by one of Europe’s longest
established environmental award schemes,
Business Commitment to the Environment.
Corus received the award for Neotec, its
tin-zinc alloy coated steel for vehicle fuel
tanks. Traditionally such tanks have been
made from either lead-alloy coated steel
or plastic. Steel’s 100% recyclability and
emission-free performance make it the
environmental product of choice. Car
manufacturers including Lotus, Ford and
Aston Martin have been quick to realise
Neotec’s environmental and business
benefits and have started to use it in the
manufacture of fuel tanks.
Andrew Milner, product manager for
coated products, comments: “Neotec
represents several years of intensive
research and development work by
Corus and has been designed specifically
to help vehicle manufacturers develop
emission-free fuel tanks that meet not
only future environmental legislation
but also tough new European recycling
targets. We are delighted therefore to
receive the Business Commitment to the
Environment award, which recognises
the huge potential of Neotec to help the
global automotive industry address some
of the key issues it faces today.”
The achievement of Corus reflects the
hallmark of the BCE Awards—recognition
of companies that demonstrate
environmental best practice as part of
their business processes. The awards
have become established as one of
the most prestigious and credible
environmental business awards in the UK.
For more information about material
solutions for the automotive industry,
visit www.corusautomotive.com.
Foreword 19

www.corusgroup.com
Galvatite, e-SURE, Neotec and Tenform are
trademarks of Corus UK Limited and Ymagine
is a trademark of Corus Staal BV.
Care has been taken to ensure that this
information is accurate, but Corus Group
plc, including its subsidiaries, does not
accept responsibility or liability for errors or
information which is found to be misleading.
Copyright 2005 Corus UK Limited
Design: ELEVATOR www.elevatordesign.co.uk
Foreword Magazine
Corus Strip Products UK
PO Box 10
Newport
South Wales
NP19 4XN
T: +44 (0)1633 755136
E: foreword@corusgroup.com
CSPUK19:2000:UK:05/2005