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Corus wins EUR 100 million contract to supply Anglo-Dutch pipeline

Corus Group plc has been awarded a contract valued at over EUR 100 million (NZ$192 million) to manufacture the entire steel line pipe for an Anglo-Dutch gas pipeline. The contract has been awarded by BBL Company, which is majority owned by Gasunie of the Netherlands. This represents one of the largest pipe contracts awarded to Corus Tubes Energy Business, based in Corby.

As UK North Sea gas production is expected to decline, the BBL pipeline will provide a vital link to enable forecast UK gas demand shortages to be met from international sources. The pipeline will link Balgzand in the Netherlands to Bacton on the Norfolk coast of England, a distance of some 240 kilometres. The project will involve the manufacture of over 110,000 tonnes of 36" diameter pipe and forms part of a EUR500 million project, known as 'BBL Pipeline'.

BBL Company will own and operate the pipeline. The line pipe will be manufactured during 2005 at Corus' large diameter pipe mill in Hartlepool, the most advanced facility of its type in the world. In addition to steel pipe, Corus will also supply anti-corrosion coating and concrete weight coating, which will be applied under sub-contract by Bredero Shaw Limited at its Leith facility near Edinburgh.

Rauke Henstra, Division Director, Strip Products comments: "Winning this contract demonstrates our world leading capability in the manufacture of line pipe, beating off stiff international competition. We are pleased to have been successful in offering our Dutch client a winning pipeline package. Recent investment and a comprehensive continuous improvement programme have played a role in securing this major contract along with other recent successes in Egypt, Nigeria, Angola and China."

Commenting on the contract benefits, Martin Bosman, Managing Director at BBL Company said: "Corus has provided us with a comprehensive pipeline solution. Their technical expertise, track record, cost-effectiveness and project management abilities mean that they are the right choice for this prestigious and challenging project."

Corus is one of the world's largest metal producers with an annual turnover of £8 billion and major operating facilities in the UK, the Netherlands, Germany, France, Norway and Belgium. Corus' four divisions comprising Strip Products, Long Products, Aluminium and Distribution & Building Systems provide innovative solutions to the construction, automotive, packaging, mechanical engineering and other markets worldwide. Corus has around 49,000 employees in over 40 countries and sales offices and service centres worldwide. Combining international expertise with local customer service, the Corus brand represents quality and strength.