Tata Steel UK invests in tubes division

Tata Steel UK is investing in a single high-tech warehouse, and the relocation and upgrading of the rectangular hollow section processing line and the cold mill at its Corby site in the East Midlands. This will see improved efficiency and reduced energy consumption.

“We are creating a single site warehouse within the East Works, which will allow the closure of the South warehouse,” project leader Nigel Chudley says in a note seen by Kallanish. “Significant work is ongoing to prepare the ground for the installation of a racked warehouse solution. Over the last couple of weeks the team have been working with our contractors to break ground, which is the first element of a 14-week programme to prepare the flooring which will support 18,000 tonnes of finished tube product.”

The new warehousing system will bring significant advantages to the current system, enabling the tubes operation to rotate stock much more efficiently and reduce stock losses, Tata Steel UK observes.

The Corby site produces steel tube products from steel made at the Port Talbot works. Manufacturing processes on the site will now be brought closer together as part of the £25 million ($34m) scheme. This is being paid for in part with the sale of land freed up by the changes as well as savings from operational improvements.

The investment comes amid uncertainty over the future of Tata Steel in the UK, as the firm continues to seek assurances from the UK government while separating its UK and Netherlands units.

Adam Smith Germany