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Corus Group In France

Corus Group In France. Beniamin SMO L IJ Sandor ERDEI Kitty LIANG Ga-Eun OH. Executive Overview. Introduction History of Corus & recent acquisition Steel Market Corus in France. Introduction. Corus Group

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Corus Group In France

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  1. Corus GroupIn France Beniamin SMOLIJ Sandor ERDEI Kitty LIANG Ga-Eun OH

  2. Executive Overview Introduction History of Corus & recent acquisition Steel Market Corus in France

  3. Introduction • Corus Group • Aerospace, engineering, automotive, packaging, construction, energy & power generation, consumer products, rail • Corus French subsidiary • provides a range of rail products and railway infrastructure services to the international rail industry

  4. Corus Group Financial Performance

  5. Sogerail A subsidiary of the Usinor group(French company)‏ Employees : about 430 Products: rail products Location : at Hayange in the Lorraine region of France. Turnover : 170 million euros (March 1999 Recorded)‏

  6. Birth of Corus Group British Steel acquired Sogerail on 2nd October 1999 British Steel merged with the Dutch steel producer Koninklijke Hoogovens to form Corus Group on 6 October 1999 After this merger, conflicts led bad performance In 2001, operating loss touched ￡1.152 billion In 2002, losses stood at ￡458 million In 2003, new CEO, Philippe Varin implemented ‘Restoring Success’ program cost savings touched ￡680 million in 42 months, employee productivity rose by 5% in 2005

  7. Acquisition by Tata Steel In Oct 2006, the board of Corus decided to accept Tata’s proposal to acquire Brazilian steel company CSN announced to participate in acquiring Corus Group The price was getting increased due to competition Tata Steel acquired Corus Group at 608p per share in April 2007 Tata Steel Group consists of Tata Steel & Corus Group Ltd

  8. History of Corus Group British Steel Sogerail British Steel Koninklijke Hoogevens N.V..(Dutch)‏ Corus Tata Steel Corus

  9. 2006 Global Steel Industry

  10. After the acquisition

  11. World Steel Consumption

  12. Sogerail British Steel

  13. Entering the French Market Rail is a steel niche market Access to European market through France. Know-how Transport, logistics

  14. Personnel Merge in France Commercial unit moves to new French base 10 French employees laid off 30 British employees moved to France British Nationals: 30 French Nationals: 20

  15. Differences in style emerge Centralization Limited autonomy Bureaucracy

  16. Cultural differences Meetings: Highly organized Nice presentations Less decisions Contacts The boss speaks only to immediate subordinates Language Bonjour, Merci.. Meetings: Less organized More discussions Faster decisions Contacts The boss speaks to every employee Language: High expectations of English proficiency English French

  17. Corus rail today Only 5 British employees remained from the original 30 These 5 settled down in France The British and the French couldn’t work together in long-term

  18. Negative effects of the merger British tried to launch new products with their model, ignoring the French objections Mr. Dabas and 3 other French managers left the company

  19. Positive effects of the merger More control than before the merger less accidents, the factory is safer for the workers

  20. Merger with Tata

  21. Merger with Tata We do not know the results of the Tata takeover Mr. Dabas thinks: Tata doesn’t even know that Corusrail exists Tata is too far from France

  22. “Test of interests of Tata” Corusrail will ask at the end of 2007 for investment Increase Rail length 80 108 Competitors have 120, but 108 can easier transported Mr. Dabas advice: sell off Corus Rail

  23. Conclusion • Give confidence to the former employee • Don’t control everything • Send people who know French culture or at least are interested in it • If the objectives are not met than discuss

  24. We Thank • Mr. Gerard Glas CEO • Mr. Hubert Dabas Commercial Manager • Ms. Laure Lafare Andministrative Assistant

  25. Thank you for your attention!

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