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Environment report 2000

3906/40 Environmental report - AngelfireThis report covers Corus Group plc and its majority- ... solutions to a broad range of markets. ... general public. Steel and aluminium products

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Environment report2000

The scope of this report

This report covers Corus Group plc and its majority-owned subsidiaries, with the exception of AvestaSheffield AB. It also excludes associated companies.

The report describes the Group’s environmentalperformance during 1999 and details targets forimprovements. It will be updated on a regular basis to indicate future progress.

More detailed information for a number of thecomponent parts of the Group is included in separatereports from individual business units. Those currentlyavailable are listed on the Corus Group Internet site. A separate update on progress against the targets setfor the former British Steel is also available.

Contents

Introducing CorusMessage from the ChairmanSustainability and other key issuesCorporate environmental policyEnvironmental targets Case Study: Life-Cycle AssessmentOur approach to environmental managementCase Study: Innovative New Can DesignEnvironmental protection costsCase Study: Waste Minimisation ProjectOperational performanceCase Study: Corus Primary Aluminium, DelfzijlCase Study: Greenmelt, DuffelCase Study: Corus TuscaloosaCase Study: Improved Effluent Treatment, OrbProduct developmentCase Study: Recycling PackagingCorus in the communityValidationGlossary

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1 Belgium2 Canada3 China4 Denmark5 France6 Germany7 Hungary8 The Netherlands9 Norway

10 Portugal11 Singapore12 Spain13 Sweden14 Switzerland15 Turkey16 United Kingdom17 USA

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The scope of this report

Environment report 1

Principal manufacturing locations

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1

Introducing Corus

Environment report 3

Corus Group plc was formed in 1999by bringing together British Steel andKoninklijke Hoogovens to create aninnovative metals company thatcombines international expertise with local service.

We are committed to working inpartnership with our customers,helping them to streamline theirbusiness and achieve imaginativeways of working. Corus alreadysupplies a variety of innovativesolutions to a broad range of markets.

Through our 23 business units, we have an extensive portfolio ofproducts and services, including a strong presence in carbon,engineering and stainless steels, as well as in aluminium.

With headquarters in the UK, Corus is listed on the London, New York and Amsterdam Stock Exchanges. We have manufacturing sites in 17 countries, sales offices in 41countries, service centres in Europeand North America, and producemore than 21 million tonnes of steeland approaching half a million tonnesof aluminium annually. Our worldwidesales are around £9 billion ( 14.4billion)*. The Group employs around64,000 people in more than 40countries.

The main markets for our productsare construction, automotive,packaging, aerospace, shipbuilding,rail transport, energy and engineering.We are the only long-term Europeansupplier to Boeing and ourrevolutionary ‘square can’ was theprototype Can of the Year in 1999.Corus supplies many of the volumecar producers in Europe and high-profile construction projects haveincluded the Tsing Ma bridge andChep Lap Kok airport in Hong Kong,Cardiff Millennium sports stadium,and the Petronas Towers in KualaLumpur.

Our annual expenditure on researchand development is currently around£84 million ( 134 million). As well as carrying out R&D in areas such asprocess control and environmentalprotection, there is a drive to takeR&D activity to the interface withcustomers’ activities in key marketsectors. Particular attention is given to engaging with customers at theconcept stage of product design inorder to ensure that the best productis specified, whether it be for a car, a can, a bridge or a building.

Corus places great emphasis oncontributing to a sustainable societyand steel and aluminium are two ofthe world’s most recycled materials.Much of the steel and aluminium inuse today will be recovered, recycledand reused again and again by futuregenerations in different applications.We recognise that our processes can have an environmental impactand as a result we are committed to continuously improving ourenvironmental performance.

*£1 = 1.60 as of 1/6/00

Introducing CorusThe future in metal

Chairman’s message

4 Environment report

This is the first corporate environmentreport published by the Corus Group.It sets out our new environmentalpolicy, describes our approach toenvironmental issues, provides detailsof our performance and outlines thestrategic environmental targets andlong-term goals we have set for thenew company. We believe care for theenvironment, including optimising ouruse of energy, to be essential both interms of our duty to society and toensure the continuity of our business.

Environmental protection isfundamental to Corus and we see it as everybody’s responsibility. We recognise, therefore, that a highstandard of environmental awarenessamong our staff is a prerequisite forachieving good performance and we are committed to providingeffective education and training onenvironmental matters at all levelswithin the Group. We also attach great importance to maintaining good relations with the communities in which we operate.

We have made significantenvironmental improvements duringthe last few years and the casestudies in this report illustrate ourpositive record in this respect.

Product stewardship and continueddevelopment has led to better,stronger and lighter products whichallow our customers to developeveryday items which have betterenvironmental performance and useless energy. In our own processes we have reduced our use of energyand therefore have reduced CO2

emissions; we have reduced ouremissions to air and discharges towater, and have further minimised the amount of waste we produce.Over 50% of our operations arecurrently certified to the independently verified international environmentalmanagement standard ISO 14001. We are also currently engaged in a number of major investmentprogrammes, which will continue to demonstrate our commitmentto increasingly high environmentalstandards.

We advocate voluntary agreementsbetween industry and government,which we believe achieveenvironmental improvements moreeffectively than fiscal measures suchas taxes. We have made a number of such voluntary agreements in theNetherlands; and in the UK, we arenegotiating an agreement to reduceenergy usage.

Through these agreements we willsignificantly reduce our emissions ofthe greenhouse gases carbon dioxide and perfluorocarbons in order tocontribute to achieving the targets setby the Kyoto Protocol.

We recognise, however, that we still have a number of issues toaddress and we have set ourselves a number of strategic improvementtargets, which pave the way forfurther progress in improving ourenvironmental performance, andstrengthen our contribution to asustainable society.

As this is our first report, we areparticularly interested in your viewsconcerning its content, style andapproach. We would thereforeappreciate any feedback you can offer and a reply card is provided for this purpose.

Sir Brian Moffat

Message from the ChairmanWe believe that care for the environment is essential, bothin terms of our duty to society and to ensure the continuityof our business

Sustainability and other key issues

6 Environment report

We are committed to incorporating theprinciples of sustainable developmentinto all aspects of our operations. Inthe light of societal concerns aboutprotecting the environment for futuregenerations, we recognise the need to use environmentally friendliermaterials with improved environmentalperformance.

However, sustainability is a balancingact between social, economic andenvironmental considerations. Thereis an unavoidable conflict betweeneconomic progress and concern for the environment. Society as awhole demands more resources and amenities that consume energyand materials. The debate aboutsustainability, therefore, has to involveeveryone – business, government,international bodies and the general public.

Steel and aluminium products play a role in everything we do in modern-day life. Both metals are fully recyclable, and there are nowwell established industries for thispurpose. For example, over 40% ofthe world’s production of ‘new’

steel is made from ‘old’ steel. Thesemetals are therefore at the heart ofthe sustainability debate, since whiletheir production consumes resourcesand energy, they make a majorcontribution to the welfare and quality of life of mankind.

Our concept for the future is thesustainable loop. Achieving andmaintaining a sustainable loop is, we believe, the key to sustainability.The first requirement is to continue to reduce the weight and the amount of material in our products and toimprove their durability. The second is to establish more systems andprocesses to remanufacture ourproducts so that they can be

reused in the same or in different applications.

The third requirement isto maximise recycling.

As a result, we can minimise bothdisposal and the use of resources. A number of examples of how we arealready working within the sustainableloop are included in various sectionsof this report.

Product stewardshipSteel has excellent mechanicalproperties, combined with highstrength. Aluminium offers lightweightsolutions to design problems,conserving both raw materials andenergy. The high-strength properties of our metals also lead to improvedsafety performance. As described laterin this report, the metals industry ismaking a very positive contribution toachieving sustainability by developinghigh-quality products which are lighter,stronger, require less energy toproduce and, more importantly,consume less energy in use.

Sustainability and other key issuesSustainable development is a tough challenge, but it’s one that Corus willingly takes on

Lightweighting

Recycling

Disposal

Remanufacturing

Raw material UtilisationManufacture

Chart 1 Sustainable Loop

Sustainability and other key issues

Environment report 7

We promote and assist in the return ofsteel and aluminium for reprocessingand we also actively encouragecustomers to use our products in themost sustainable manner. As a result,most of the metals in end-of-lifevehicles and construction materialsare now recycled, and we havelaunched initiatives for improving therecovery of packaging goods.

All Corus steel and aluminiumproducts are recyclable and alsocontain significant quantities ofrecycled material, ranging fromtypically 20% for blast furnace route steel to 100% for secondaryaluminium and electric arc furnaceroute steel. Some examples of goodpractice across Corus are included in the case studies in this report.

Sustainable product designWe recognise the importance ofradical new initiatives in sustainabledesign. Through our ‘Design Futures’project, we are sponsoring threeleading UK organisations – the BritishDesign and Art Direction Association,the Architecture Foundation and theDesign Museum in London – indeveloping sustainable productdesigns for construction, transport,health, leisure and work.

For the foreseeable future, steel and aluminium will remain the most important engineering andconstruction materials in the modern

world. As they are used in just aboutevery aspect of life, progress withoutthem is inconceivable. Both will play a key role in meeting the challengesof sustainable development in thetwenty-first century.

Combating climate changeConcerned about climate change,governments around the world agreed in Kyoto in December 1997, to take further action to reducegreenhouse gas emissions. Metalsindustries worldwide have animportant contribution to make tohelp meet these objectives, as themanufacture of steel produces CO2*and the manufacture of aluminiumgenerates perfluorocarbons (PFCs)**.

In response to this challenge we arecontinuing to improve our energyefficiency and our CO2 emissionshave been significantly reduced. For example, for the former BritishSteel, CO2 emissions were 9% lowerin 1999 than in 1990. We will continueto work to improve our energyefficiency and have made a voluntaryagreement with the NetherlandsGovernment to benchmark our energyconsumption against world-beststandards. The objective is forIJmuiden and Delfzijl to become,respectively, one of the world’s topsteelmaking and primary aluminiumproduction locations in terms ofenergy use. In the UK we are alsocurrently negotiating an agreement

with the Government to further reduceenergy consumption.

We believe, however, that a globalproblem requires a global approach,involving all countries. For example, a carbon tax or other measuresintroduced in some countries, but not others, will distort internationaltrade and, paradoxically, may lead to increased production of steel oraluminium in countries with a higherlevel of CO2 emissions. Furthermore,taxes would divert financial resourcesfrom research and development and investment in products andprocesses which would deliver betterenvironmental performance. Ourfocus is on voluntary programmesand incentives to encourage betterenergy conservation and efficiency, in which we can all play our part.

* The steel industry’s generation of CO2

is mainly associated with the chemical

reduction of iron ore using carbon in blast

furnaces to produce molten iron, which is

then converted into steel.

** Anode effects during the electrolytic

aluminium production process generate

PFCs, which have high global warming

potential.

Environmental policy

8 Environment report

Corus Group plc considers care forthe environment to be essential, bothin terms of our duty to society and toensure the continuity of our business.We are committed to protecting theenvironment by minimising the impactof our operations and our productsthrough the adoption of sustainablepractices and through continuousimprovement in environmentalperformance and control.

Our objectives are to:• meet the requirements of all

relevant legislation and agreements,in all countries and regions in whichwe operate

• implement effective environmentalmanagement systems and to ensure the environmentalawareness of our workforce, whileencouraging every employee to act in an environmentallyresponsible manner

• improve the environmentalperformance of our processes byreducing emissions, minimisingwaste and controlling noise

• contribute to sustainabledevelopment by using energy and raw materials more efficiently,thus optimising our use of naturalresources

• evaluate the environmental impactsassociated with the manufactureand use of our products and by-products, and to research and develop new technologies for improvements

• help customers understand theenvironmental effects of ourproducts throughout their life cycle

• promote the recovery, recycling and reuse of our products

• encourage suppliers andcontractors to maintain soundenvironmental practices

• respect the general environmentand wildlife habitats in and aroundour sites and, where appropriate,progressively improve their visualamenity

• respond to the concerns of localcommunities and other interestedparties on environmental issues

• co-operate with government andregulatory authorities in thedevelopment of cost-effectivelegislation

• audit environmental performanceand report progress on policyobjectives on a regular basis.

Corporate environmental policyConcern for the environment is integral to our organisation

Environmental policy

Environment report 9

We put our environmental policyinto practice as follows:• Compliance with legislation and

other agreements, such ascovenants, is achieved througheffective environmentalmanagement systems, for exampleISO 14001 or equivalent, withineach business unit. Any temporary,inadvertent, non-compliance iscorrected as soon as possible.Where adequate regulations do not exist, we adopt and applyinternal standards that reflect ourcommitment to the environment.

• Concern for the environment isintegral to our organisation. Webelieve that protection of theenvironment is the responsibility of everybody and expect allemployees, contractors and visitorsto behave in an environmentallyresponsible manner. Appropriateand effective education and training on environmental mattersare provided at all levels within the Group.

• Product stewardship is vital tosustainability. In this respect, we focus on the environmentalaspects of our products throughouttheir life cycle; optimising our useof natural resources by minimisinginputs of raw materials and energy.Through research and developmentand the application of life-cycle

assessment (LCA) techniques, we demonstrate a sustainableapproach by developing cleanertechniques for the manufacture,use, application, recovery andrecycling of our products and by-products.

• Our aim is to continuously improvethe environmental performance ofour processes and products, withinthe constraints of our financialposition. This includes reducingemissions to air and water,minimising solid waste arisings and controlling noise to acceptablelevels. Performance is monitoredand targets are set, whereappropriate. We take into accountthe expectations of the public,modern management practices andthe latest scientific knowledge andtechnology. Due consideration isgiven to local wildlife habitats and tothe visual appearance of our sites.

• We communicate widely, internallyand externally, about environmentalissues and also respond to anyconcerns which may arise. Thisincludes our employees; localcommunities; local authorities;non-governmental organisations;financial institutions; schools,colleges and other educationalestablishments; industry groups at national and international level;and shareholders.

• We aim to ensure thatenvironmental legislation andagreements achieve their objectivesin the most cost-effective manner.We therefore support governmentsand regulatory authorities byproviding expertise and assistancein the development of legislation,where appropriate.

• To assess progress on improvingenvironmental performance and inmeeting policy objectives, internalaudits, led by a central auditmanager, are carried out asnecessary. These audits are aneffective means of transferring bestpractice and knowledge betweendifferent business units and sites.

• Through supply chain management, including auditingwhere appropriate, we encouragesuppliers and contractors tobehave in a responsible mannerand to maintain soundenvironmental practices.

• Where future planning andinvestments are concerned, weendeavour to adopt processes that are not only economic but also have a minimum impact on the environment. All newly installedplant and equipment will becapable of meeting, as a minimum,the applicable up-to-date nationaland international standards.

Environmental targets

10 Environment report

Our targets are to:• achieve 95% certification to

ISO 14001 for all Corus Europeanmanufacturing operations* by theend of 2002

• audit all major suppliers andcontractors by the end of 2002 and set improvement targets forthose not meeting ISO 14001 orequivalent standards

• undertake appropriate riskassessments for any potentiallycontaminated land at all Europeansites under Corus ownership by the end of 2001

• reduce emissions of perfluoro-carbons from the primaryaluminium production process by 50%, compared to 1990, by the end of 2005

• reduce total energy consumption inthe UK by 10% by 2010, comparedto 1997, and to become one of theworld's top steelmakers andprimary aluminium producers interms of energy use in theNetherlands by 2012

• fully evaluate the potential for thesuppression of dioxin emissionsfrom the iron ore sintering processby the end of 2001

• quantify the emissions associatedwith our transportation of materialsand people by the end of 2001

• reduce waste to landfill by 10% from1999 levels by the end of 2002

• increase the amount of steelpackaging waste recycled in the UKby 20%, compared to 1999 levels,by the end of 2001

• install, where necessary, enhancedincoming scrap and productradiation detection equipment at all steelmaking sites by the end of 2002

• identify and assess, wherenecessary, our contribution toambient air concentrations of finedust particles (PM10s) and evaluateoptions for improvement by the endof 2003.

* excluding interim mergers & acquisitions

Environmental targetsWhere we want to be

Mining andenergy generation

Production of metals

Processing

Disposal

Reuse andRecycling

Emissions to air,water and land

Raw materials andenergy consumption

Usage

Transport

Transport

Case study

Environment report 11

Life-cycle assessment (LCA) charts the environmentalimpact of a material or a product ‘from cradle to grave’, and is an important tool for sustainable development. For steel and aluminium there are seven distinct stagesfrom extraction of raw materials to ‘end of life’:

• Mining and generation (producing raw materials andgenerating energy)

• Production (of metals)• Transport (of all raw materials, products, by-products

and wastes)• Processing (manufacturing products from steel or

aluminium)• Consumption (use of the final product by the customer)• Recycling (recovery and reuse of the end-of-life product)• Disposal (when recycling is no longer a viable option).

LCA has become an important part of our environmentalstrategy. We recently participated in a worldwide projectundertaken by the International Iron & Steel Institute toprovide reliable and transparent life-cycle data on a rangeof steel products. This study, which was extremely rigorousand in accordance with guidelines for LCA set out in ISOstandards 14040 and 14041, was subjected to independenttechnical review.

LCA can also be used to assess any environmentalimplications when considering modifications to specificproduction processes as well as the general downstreamenvironmental impacts of our products. Examples ofenhanced product performance can be found in the product development section of this report.

Case Study: Life-Cycle AssessmentReplacing heavy products with lighter, stronger ones;using less energy

Our approach

12 Environment report

We recognise that protection of the environment is not only a responsibility of management but also of employees,contractors, service providers, suppliers, customers, users of our products, and those engaged in reuse and recycling.Management ensures that priorities are defined, objectivesare specified, adequate resources are made available to meetthese objectives, actions are implemented and progress ismonitored and reviewed. A prime objective is to create apositive attitude towards environmental protection throughoutthe company. This is achieved by matching accountability toclear areas of responsibility at all levels and by providingeffective and appropriate education and training. Eachbusiness unit manages its own affairs under the umbrella ofthe Executive Committee, which establishes environmentalpolicy and strategy guidelines and monitors performance inrelation to environmental issues across the Group.

Assisting in the task of corporate governance is a Board-level Environment Committee, which reviews operationalperformance as it affects the environment, anticipatespotential environmental issues, and advises on strategicoptions for environmental improvements. Each business unit formulates plans to meet the Group’s environmentalpolicy and strategy guidelines, implements effectivesystems to identify, assess, monitor, control and minimiseenvironmental risks, and instigates and encourages actionto improve protection of the environment.

Environmental management systemsTo date, some 50% of Group operations have been certifiedby independent verifiers to the international environmentalmanagement standard, ISO 14001, thus ensuring continualimprovement in environmental performance. We have setourselves the target of 95% of operational sites in Europe,excluding any mergers and acquisitions which occur in themeantime, to achieve certification by the end of 2002.

In addition, we have undertaken to survey our majorsuppliers to establish their environmental credentials. We expect them to make formal commitments toenvironmental protection and to adopt standards inaccordance with, or equivalent to, ISO 14001. A programmeof environmental auditing of some of our suppliers, serviceproviders and contractors has started. Furthermore, weprovide our customers with advice and guidance on theuse, recovery and recycling of our products.

Risk managementMinimising and managing risk are important components of our environmental management systems. Potential risks are identified through techniques such as auditing,near-miss reporting and formal risk assessments.

For example, Corus Packaging Plus was concerned that the risk of chemical spillage at the Ebbw Vale site in SouthWales presented an environmental risk because the site’sstorm drains were connected directly to the River EbbwFawr. A study was therefore commissioned to carry out arisk analysis and to propose options to minimise potentialrisk. Information from the risk assessment formed the basisfor aspect and impact assessments for ISO 14001certification, which was achieved in October 1999. As aresult of the study, Corus committed £850,000 ( 1.4m)to minimising the risks identified. This was achieved by amajor reconstruction of the local drainage system, theconstruction of a new intermediate interceptor chamber andthe reuse of a redundant cooling plant/pump house. Toreduce the risk from two remaining catchment areas outsideof the interceptor system, a further £100,000 ( 160,000)was spent to move the sulphuric acid storage facilities forNos. 3 and 4 Electrolytic Tinning Lines to a new purpose-built facility within the plant. This reduced all catchmentareas to a medium or low environmental risk.

Our approach to environmental managementCreating a positive attitude towards the environmentthroughout the company

Our approach

Environment report 13

For example, a Trace Organics Analysis Laboratory (TOAL)was established in 1995, primarily to investigate dioxinreleases from processes in the production of iron and steel.The TOAL has achieved national accreditation in the UK forboth sampling and analysis of dioxins. Investment in thesefacilities has enabled a wide range of studies to beundertaken in order to develop a greater understanding ofthe sources of dioxins, their mechanisms of formation andthe environmental impact of steel industry emissions. Aninventory of sources has been compiled which shows thatiron ore sintering and electric arc furnace steelmakingprocesses are the only significant sources of dioxins in ourplants. Emissions from Corus sinter plants are generallylower than those elsewhere in the world, which is believedto stem from the care taken in the selection of materialsrecycled through the process. Nevertheless, considerableeffort has gone into investigating the way dioxins areformed in order to identify and develop methods forpreventing or minimising their formation at source. Thiswork has led to the development, by Corus at Llanwern, ofa process modification that has the potential to significantlyreduce the formation of dioxins in the sintering process.Whilst this technique holds much promise, further provingtrials are required to ensure that there are no adverseenvironmental or operational effects before it can beconsidered as proven technology.

In parallel with this work, other emerging techniques forreducing dioxin emissions, such as the injection of carbonadsorbents, are also being studied.

Ongoing product-related research and development atCorus is aimed at providing solutions for our customers to improve their products through, for example, bettercorrosion resistance, reduced weight and improved energyperformance.

TrainingAdequate protection of the environment requires thateveryone involved is aware of the environmentalimplications of their actions. Our comprehensiveprogramme of appropriate formal and on-the-job training atall levels establishes and reinforces individual responsibility.Everyone, including contractors, is encouraged to addressand report shortcomings and to provide constructivesuggestions for improvements in environmental performance.Long before ISO 14001 was developed, Corus was at theforefront of ensuring that employees were aware of theimplications of their actions with regard to protecting theenvironment. This approach has become formalised withthe adoption of ISO 14001 across the company. Each site or business develops and adapts its own trainingpackage, including: • formal presentations and seminars• on-the-job task-based training• video presentations• proactive use of notice boards• environmental components in management and

technology courses.

Research, Development and Technology (RD&T)Our Research, Development and Technology centres workclosely with production and commercial staff in thebusiness units to anticipate long-term requirements and to ensure that our manufacturing methods and products are sustainable and able to meet future environmentalchallenges. Environmental issues are always taken intoaccount when we consider new investments. Our RD&Tstaff have broad expertise and use state-of-the-art systemsand equipment to address issues such as land remediation,life-cycle assessment, NOx reduction and environmentalimpact assessment.

Le Carré, a new packaging solutionfrom Corus Packaging Plus, is basedon an innovative concept. The can issquare, with vertical stiffening ribs andan exceptionally thin can body. Unlikeconventional cans, Le Carré has asmaller pressure difference over thecan wall, which allows the use ofthinner body material and makes itpossible to reduce the can’s weight bymore than 15 per cent. The squareshape also reduces void spaces whenpacked together, thus improvingstorage and transport efficiency. LeCarré – developed by Corus Research,Development and Technology – wonthe international Can of the Yearcompetition in the Netherlands in 1999in the prototype category.

Case Study: Innovative New Can DesignEnvironmental considerationsplay an increasingly importantrole in the development ofour products

Case study

14 Environment report

Our approach

Environment report 15

TransportOur operations require the transportation of many millionsof tonnes of raw materials as well as intermediate andfinished products. This, together with on-site transfers andbusiness travel, consumes fuel and releases CO2 and otherpollutants. Off-site movements can also have an impact ontraffic congestion within the community. Corus has thereforeembarked upon a programme to quantify transportmovements and their environmental impact, which willenable the efficiency of our transportation and materials-transfer systems to be assessed and allow opportunities for reducing fuel consumption. A number of importantinitiatives have already led to major reductions in thetransport of our products by road:

• A project carried out at IJmuiden in the Netherlands inconjunction with the Dutch Ministry of Transport, PublicWorks and Water Management, has identified three viablesolutions: moving transport from road to rail or water,aggregating loads, and improving logistics. As a result, anall-weather terminal has been built at IJmuiden and a newdistribution centre has been created at Gelsenkirchen inGermany. The overall aim of this project is to reduce roadtravel by 4.4 million kilometres per year.

• There has been a move towards ‘hub’ distributionsystems in the UK, where steel-related products aredelivered by rail to strategically located warehousing,prior to short onward journeys to customers by road. This has eliminated some 25,000 lorry movements peryear between South Wales and the West Midlands.

• Reopening of Port Talbot harbour to supply approximately300,000 tonnes of granulated slag by sea for cementmanufacturing has also eliminated a further 25,000 lorry journeys.

Taken together, switching deliveries to rail and sea hasprevented a significant amount of CO2 from being releasedinto the atmosphere each year, as well as helping to improveroad safety and reduce traffic congestion and noise.

Land remediationWe are aware that we have certain responsibilities formanaging historically contaminated land. We carry outresearch (in-house and in collaboration with others) into the applicability of remediation methods, such as bio-remediation, and the latest site investigation and riskassessment methods. We are also active in networksdedicated to improving understanding of the issuesaffecting contaminated land, such as the UK Soil andGroundwater Technology Association (SAGTA) and theNetwork for Industrially Contaminated Land in Europe(NICOLE), which are working to demonstrate theeffectiveness of new remediation technologies and toimprove sustainability through redesign of sites with lessreliance on landfill.

At IJmuiden, a site-specific approach to soil managementhas been developed. After entering all relevant informationin a Soil Information System (due for completion inDecember 2000) a soil quality map will be produced inorder to determine whether additional soil investigation and characterisation of contamination is necessary. Anynecessary remediation will then be designed to mitigaterisks such as:• evaporation of volatile contaminants • corrosion of underground infrastructure by pollutants• contamination crossing the boundaries of the site.

In addition to charting current soil quality, the system isdesigned to prevent further pollution. An inventory of allactivities at IJmuiden that might present a risk of soilcontamination has been compiled and additional measureswill be taken as necessary to minimise such risks.

Our approach

16 Environment report

In partnership with the England and Wales EnvironmentAgency, we have established the Wales Waste ManagementCentre to advise and educate businesses on mattersrelating to waste management, waste movements, landreclamation and clean technology. Corus has alsosponsored a number of waste minimisation researchprojects involving local universities.

AuditingIn addition to the third-party audits required to obtain ISO 14001 certification, internal audits are undertaken at allof our manufacturing facilities. The results of these audits,which are undertaken by a team of off-site environmentspecialists, are presented to site management and aresummarised in reports to the Board EnvironmentCommittee. The benefits of these audits derive not onlyfrom assessing environmental management systems,operational procedures and performance, but also from the fact that they provide opportunities for identifyingimprovements and modifying practices. Within three monthsof the completion of each audit, the site provides details ofactions completed and plans for future improvements.These audits have proved extremely effective in spreadingbest-practice initiatives and experience among businessunits and sites.

A further example of our commitment in this area is a £25m ( 40m) remediation project which has now beencompleted at Ravenscraig in Scotland. This is a 1,000-acre(approximately 400-hectare) site that was mined for coal formore than 100 years before steelmaking began in 1957.Following demolition and clean-up, a state-of-the-art facilityhas been built for containing contaminated materialsremoved from the site, so that the land is now available forfurther use.

Co-operative partnershipsWe are keen to participate in joint initiatives that will furtherenhance knowledge, assessment and resolution ofenvironmental challenges. Examples are active participationwith local authorities in air quality management studies inPort Talbot in South Wales and the development of NOx

emissions trading mechanisms with other industries and theDutch Government. Also, in the Netherlands (IJmuiden,Corus Primary Aluminium, Delfzijl and Corus Tubes),Germany (Corus Primary Aluminium, Voerde) and Norway(Corus Packaging Plus, Bergen) we work in partnership with other industry sectors and the respectivegovernments/authorities to develop voluntary agreements(also known as covenants) on issues such as energyefficiency, packaging recycling and the reduction ofgreenhouse gases and air/water pollution. We have alsobeen involved, alongside regulators and other industrialcompanies, in the Centre for Exploitation of Science andTechnology (CEST) in the UK (see the Dee Catchment casestudy) and have provided input for EC regulations, such asthose for Integrated Pollution Prevention and Control (IPPC),the proposed End-of-Life Vehicles and Electrical GoodsDirectives, and United Nations Economic Commission forEurope (UN/ECE) protocols for reducing emissions.

Environmental protection costs

Environment report 17

Capital expenditure:In addition to specific expenditure on recent environmentalprojects such as the Llanwern Secondary VentilationSystem (£19.5m, 31m), a significant proportion ofexpenditure is dedicated to process or productimprovements, such as the Direct Sheet Plant at IJmuiden,which also have an environmental benefit. Overall capitalinvestment varies significantly from year to year, but overthe past five years has averaged approximately £450m ( 720m) per year, of which around 10% is attributable toenvironmental protection.

Some further examples of environmental protection-related investment projects are:• In order to reduce the environmental impact of sintering

operations at IJmuiden in the Netherlands, an integratedapproach has been followed in order to upgrade theexisting inefficient air pollution control equipment. As aresult, Emissions Optimised Sintering (EOS) has beencombined with an Airfine gas cleaning system at a totalcost of around £30m ( 48m). The EOS system recycles asignificant proportion (around 50%) of the sinter plantwaste gases back through the sinter bed. The reducedwaste gas flow is then cleaned using high-efficiency wetscrubbers in the Airfine system and overall emissions toair, including particulates, heavy metals, NOx, SO2, dioxinsand CO have been reduced. Discharges to water havebeen minimised by extensive water treatment.

• Appleby Coke Ovens No.2 Battery at Corus Construction& Industrial, Scunthorpe was recommissioned in October1999 following a rebuild from ground level upwards. Themain driver for the rebuild was to improve environmentalperformance and working conditions. The total cost ofthe project was in the order of £10m ( 16m).Improvements included staged air combustion to reduceNOx emissions, water-sealed ascension pipe lids toreduce fugitive emissions during the carbonisation cycle,

new design oven doors to reduce fugitive emissions, andtop sliding joints to improve the integrity of the batteryand reduce leaks from flues and chambers.

• In order to reduce volatile organic compound (VOC)emissions and odours, regenerative thermal oxidiserswere installed by Corus Colors during 1999 at bothTafarnaubach and Bryngwyn in South Wales.

Operating costs:Annual operating costs associated with manpower,operation/maintenance (including energy use) ofenvironmental protection systems/equipment and fiscalcharges/taxes are over £190m ( 300m) for the Group as a whole. In some cases these are estimated sinceenvironment-related costs are integrated with other costs.Some of the largest items are:

Air pollution control £95m ( 152m)Waste management £45m ( 72m)Water pollution control £39m ( 62m).

Environmental protection costsA significant proportion of expenditure is dedicated to process or product improvements which have anenvironmental benefit

Case study

18 Environment report

CEST is funded by the England and Wales EnvironmentAgency and industrial organisations to assist companies inassessing potential opportunities for reducing waste andpollutant releases as well as any associated cost benefits.Corus Colors, Shotton in North Wales has participated in a CEST waste management programme, which providedassessments for industrial operators in the River Deecatchment area.

At Shotton, eight major waste minimisation opportunitieswere identified, each with substantial environmentalsavings. A total reduction in emissions to air (ie NOx, SO2

and particulates) of 377 tonnes per year has been achieved,together with an annual reduction of 4,500 tonnes in wastelandfilled and around 100,000m3 less water consumed.

• Water consumption was reduced as a result of installingconductivity controls on an overflow system and anautomatic shut-off valve on a continuous spray system.

• A wastepaper recycling scheme has been set up, whichhas raised the environmental awareness of personnel withoffice-based jobs and prevented 26 tonnes of paper ayear from being landfilled.

• Oil-fired boilers have been converted to run on naturalgas, leading to a reduction in emissions to atmosphere of NOx (82%), SO2 (99%) and particulates (91%).

• A £180,000 ( 290,000) investment in boiler modificationsmade it possible to use waste process heat to preheatfeed water, reducing energy use and costs.

• Spent pickle liquor (ferrous chloride) was previouslytreated as a waste and sent to the site’s effluenttreatment plant, where the resulting 4,500 tonnes of filtercake had to be landfilled. The ferrous chloride is nowused as a raw material in the water processing anddyeing industries.

Case Study: Dee Catchment Waste Minimisation ProjectEight major waste minimisation opportunities wereidentified, each delivering significant environmentalimprovements

new dry-scrubbing system for electrolysis process gases.Action is being taken to solve these problems. CorusPrimary Aluminium, Voerde was in compliance.

A wide variety of methods have been developed to ensurethat our environmental performance not only meets our own high standards, but can also be demonstrated to localcommunities and regulatory authorities. Where there areunsatisfactory results, the reasons are investigated andremedial action is taken. Nevertheless, with the complexnature of operations in Corus there have been someincidents that have resulted in legal proceedings against the Group. Since 1998:

• Corus Tubes at Hartlepool, UK was prosecuted inconjunction with an on-site security contractor who failed to respond to an alarm indicating an oil leak, which subsequently polluted the local watercourse, and each were fined £7,500 ( 12,000).

• Corus Construction & Industrial at Scunthorpe, UK wasprosecuted over the release of raw coke oven gasfollowing an instrument failure in the by-products plantand was fined £37,000 ( 59,000).

• Corus Tuscaloosa, USA was fined US$40,000 (£27,000; 43,000) by the Alabama Department ofEnvironmental Management for not incorporating ascavenging duct in a new melting shop extraction system.

• Corus Staal at IJmuiden, NL was fined £5,000 ( 8,000)following prosecution over a small number of relativelyminor offences which had occurred over a two-yearperiod.

Such incidents are regrettable but, learning from thisexperience, we regularly review our training, managementsystems and safeguards to minimise the likelihood of their recurrence.

Operational performance

20 Environment report

Prior to the formation of Corus, both Hoogovens and BritishSteel produced their own environmental reports. There weresome differences in the way in which data was collected and expressed, as well as in the definition of criteria andclassification of pollutants. We have now adopted aconsistent system throughout the Group. This approachreflects the most significant environmental impacts of ouroperations. Overall data for Corus Group is shown for 1999.Data is included based on (i) that which is submitted for theUK pollution inventory (ie Part A authorised processes underIPC) and (ii) equivalent emissions data supplied to theauthorities in the Netherlands and other countries. Releasesto the environment from our small sites are not significant asthey are typically <1% of the total emissions for Corus andfor this reason they are excluded from the aggregated data.

ComplianceIn the UK, environmental performance is primarily measuredin terms of compliance with discharge concentration limits.Annual mass emission limits are not common. In theNetherlands, the reverse is the case, with environmentalperformance being primarily measured via compliance withmass emission limits. In Germany, both concentration andmass emission limits are specified. The compliance datareported below reflects the situation in each country whereit is available and comparable.

During 1999, overall compliance with liquid effluent consentlimits for Corus UK operations was 99.4%. Compliance forCorus Primary Aluminium, Voerde was 100%. Overallcompliance with concentration limits for releases toatmosphere for Corus UK operations was 99.1% for spotsamples and effectively 100% for continuous monitoring.Compliance for Corus Primary Aluminium, Voerde was 100%.

Our site at IJmuiden was in compliance with its permittedmass emission limits for 1999 and is well placed to meettargets for 2000. Minor compliance issues arose at CorusPrimary Aluminium, Delfzijl as a result of commissioning the

Operational performance We devote a great deal of effort and expenditure to ensure that releases from our processes are controlledand minimised

Operational performance

Environment report 21

Emissions to airOur potentially most significant releases to air are greenhousegas emissions (CO2 and PFCs), particulates, dioxins, lead,NOx and SO2. However, environmental impact studies havebeen carried out on ambient air, soil and sediment samplescollected around our sites and these have shown that ingeneral our operations do not have a significant impact onthe local environment. Having said that, our objective is toreduce emissions where it is necessary, practical and cost-effective. The examples and case studies throughout thisreport demonstrate this commitment. We neverthelessrecognise that we have further work to do and a number ofimprovement targets have been set in this area.

Table 1 comprises aggregate data for the more significantreleases to air from Corus Group. As a result of morecomprehensive monitoring and more rigorous calculationsand estimations the data are more accurate than thatpublished in previous reports. There are still someinaccuracies, particularly concerning measurements of verylow levels of some heavy metals, which are close to limitsof detection. More detailed information is included inseparate reports from individual business units.

We have extensive programmes in place for continuousmonitoring, calculations and sampling to quantify releasesand to confirm compliance. We are also able to quantify theenvironmental impact of our emissions by incorporatingrelease data into sophisticated computer dispersion modelsthat predict pollutant concentrations in the areas around oursites. This technique is particularly useful where there areother sources of pollutants in an area or where permitted airquality levels may be exceeded.

The UK National Air Quality Strategy (NAQS) sets objectivesfor ambient air quality for various pollutants, which must bemet by specified dates. At Corus Tubes, Corby, the mainpollutant emitted is NOx. The NAQS includes objectives for

Substance Tonnes/year(unless stated otherwise)

Carbon dioxide 32,500,000

Perfluorocarbons 12.3

Particulates (non-fugitive) 9,750

Dioxins 45g

Polycyclic aromatic hydrocarbons 7.5

Benzene 130

Non-methane volatile organic compounds 1,700

Oxides of nitrogen 32,500

Sulphur dioxide 40,000

Carbon monoxide 552,000

Fluorides 206

Arsenic 0.76

Cadmium 1.03

Chromium 6.3

Copper 5.4

Lead 78.9

Mercury 0.43

Zinc 93.9

Table 1 Annual Releases to Air – Corus Group plc 1999

continued on page 24

22 Environment report

Case study

Major parts of this programme were completed in 1999:• High-efficiency, low-energy, de-dusting systems have

now been fitted on cranes that discharge aluminafeedstock from ships.

• Electrolysis pots have been automated so that theextraction hooding can remain almost fully closedthroughout all stages of the process. This has resultedin a 98% reduction in particulate and gas emissions. Thewet fume cleaning system has been replaced by a high-efficiency, dry-scrubbing system that has eliminatedprevious discharges of liquid effluent to the sea.

• An additional reduction of 600m3/hour of waterdischarged has resulted from converting the old rectifiercooling systems into closed oil and air-cooled systems.Contaminated water from pot refractories (brick linings) is also now reused in the process.

• The manufacture of aluminium needs large quantities of pressurised air. New operational systems have beenintroduced, which have reduced the use of electricity forcompressed air supply by 2 million kWh per year andfurther energy savings have resulted from the eliminationof 348 roof fans that were previously required to provideadequate building ventilation.

Case Study: Corus Primary Aluminium, DelfzijlIn 1997 a comprehensive programme of environmentalimprovements (the Retrofit Project) was initiated at CorusPrimary Aluminium, Delfzijl in the Netherlands

• VOC emissions from the cold rolling process at CorusAluminium Rolled Products, Duffel in Belgium have beenreduced by 90% following the installation of newscrubbing systems, which capture the lubricant used inthe aluminium rolling process for reuse.

• The manufacture of large diameter pipe at Corus Tubes’(Hartlepool) 42-inch mill previously generated significantvolumes of waste oil/water emulsion, which was unsuitablefor discharge due to its high oil content and traces of leadadditive. Consequently, the only suitable disposal optionwas landfilling. Although the costly landfill route was entirelyacceptable, the management team at Hartlepool devised abetter solution. Firstly, a lead-free alternative was found.Then in collaboration with, and funded by, the local watercompany (Hartlepool Water), a treatment plant wasconstructed at the site, and commissioned in April 2000.The plant, which relies on chemical treatment followed bysludge removal using the dissolved air flotation process andis operated by Hartlepool Water, now treats all of the wasteemulsion so that the effluent can be safely discharged. As aresult the discharge of lead has been eliminated and wastedisposal will be cut by over 3,000 tonnes per year.

Discharges to water and water consumptionOur operations require large quantities of water, although thisis mainly for cooling purposes where there are no significantenvironmental implications. We are continually developingtechniques for reducing water use, recycling and improvingthe quality of our discharges to ensure that they meet thelimits set by the regulatory authorities. For example, at ourPort Talbot site, a £0.8m ( 1.3m) scheme to improve thequality of effluent discharged into the sea by installingadditional clarification and sludge extraction equipment hasreduced levels of oil and suspended solids. This has led to avoluntary tightening of the discharge consent limits appliedby the England and Wales Environment Agency. Theinvestment also makes it possible for the water to berecycled, thus reducing the volume of water that needs

Operational performance

24 Environment report

both long-term and short-term concentrations of NO2 inambient air and modelling has been used to determineCorus’ contribution to current levels. The peak level at thenearest housing was found to be less than 40% of theNAQS short-term objective, demonstrating that Corus’contribution by itself would not breach the targets set out inthe UK strategy. The modelling also demonstrated that thelevel of NO2 around the Corby site is likely to meet theNAQS long-term objective, and that Corus’ contribution is less than 10% of overall levels in the area.

At Corus Engineering Steels, Rotherham, the NAQSobjectives for PM10 (particulate matter less than 10 micronsin diameter) and lead were initially investigated. The PM10objective is to achieve an annual ambient level of 40µg/m3

by the end of 2004. The objective for lead is 0.25µg/m3 bythe end of 2008. Monitoring in this instance has shown that ambient air near to the Rotherham site has PM10 levelsof around 30µg/m3 and that this level is fairly constantirrespective of wind direction, indicating that Corus’operations do not have a significant effect on backgroundlevels. The site does have an effect on ambient lead levels,but the worst-case annual average is below the 2008 target.

There are numerous examples of air emissions reductionsacross the Group. These include:• An enhancement project at Corus Construction &

Industrial, South Bank Coke Ovens (Teesside, UK), whereamongst other improvements, releases to air from oven‘pushes’ are now controlled using a hood that incorporatesbaffles and sprays to wash out the grit and dust, reducingemissions to well below the limits required by the Englandand Wales Environment Agency. Furthermore, as a result ofimprovements in raw material blending techniques at SouthBank’s sister plant at Redcar, it is no longer necessary tohold coal stocks at South Bank and windage losses havethus been eliminated. This has led not only to localimprovements in air quality but also to an overall reductionin the amount of coal used.

Operational performance

Environment report 25

to be abstracted from local rivers. At full capacity, the system will be able to clean and recycle up to 1,600m3 ofwater per hour.

Also, a new biological effluent treatment plant costing £4m( 6.4 million) was installed at IJmuiden during 2000.Biological treatment and filtration of process water reducescontaminants such as ammonia to extremely low levels andmakes the water fit for reuse or discharge. The surplusbiomass from the treatment can be recycled via the cokeovens. The new system will reduce Chemical OxygenDemand (an indicator of the level of contaminants) andthiocyanate/ammonia compounds by at least 90%.

Quantities of the 10 most significant pollutants discharged to water by Corus are listed in Table 2. As for releases to air,smaller sites have been excluded from the aggregated data if their releases are not significant compared to the total.Wherever feasible, we try to prevent releases to theenvironment. For example, Corus Colors at Tafarnaubach in South Wales produces painted steel strip for theconsumer products market. Part of the process involvespretreating the strip, which gives rise to a chemical effluentcontaining chromate, zinc and nickel. Improvements willeliminate the requirement to rinse the product and hencewill significantly reduce the effluent discharged. As well as asignificant reduction in the discharge of heavy metals, thisimprovement will also reduce the amount of water andchemicals used, while improving product quality.

Water consumption is extremely difficult to quantify, as someis used for once-through direct or indirect cooling, some isrecycled and reused in minimum-loss systems and some isused in cascade systems where the water from one processis used as the feed water for another. One example wherecomprehensive information is available is Corus Construction& Industrial, Scunthorpe (UK), where total water consumptionhas been reduced from more than 5m3/tonne of steel to lessthan 2.5m3/tonne of steel over the last 15 years.

Parameter Tonnes/year

Chemical Oxygen Demand (COD) 2,715

Suspended solids 3,500

Arsenic 1.27

Cadmium 0.14

Chromium 2.01

Copper 1.18

Lead 4.64

Mercury 0.06

Nickel 1.79

Zinc 8.18

By-product Application

Granulated blast furnace slag Cement industry

Air-cooled blast furnace slag, Civil engineering and EAF & BOS slag agricultural fertiliser industries

Tar Chemical industry

Benzene/toluene/xylene Chemical industry

Ammonium sulphate Artificial fertiliser industry

Sulphuric acid Artificial fertiliser industry

Iron oxide Electronics, cement industry and paint industries

Spent pickle liquor Water treatment, effluent and dye industries

Zinc & tin dross Metal recovery industries

Table 2 Annual Releases to Water – Corus Group plc 1999

Table 3 By-product Applications

continued on page 28

Case study

26 Environment report

Case Study: Greenmelt at Corus Aluminium Rolled Products, DuffelImproving our aluminium recycling capability

A unique melting furnace, installed at Corus Aluminium inDuffel in Belgium, allows the recycling of impure aluminiumscrap so that less primary aluminium is required.

All scrap received is stored within a covered plant,eliminating the possibility of soil contamination. TheGreenmelt furnace has been designed to cope with residualmaterials such as coatings by burning and filtering thewaste gases to ensure a final emission that complies withstringent environmental standards.

The multichamber concept of the furnace reduces oxidation of the metal, ensuring a good yield. Also, the useof large quantities of melting salts (as in primary melting) is not necessary thereby reducing the waste generated. The inevitable dross can be treated and the residualaluminium from it recovered in our secondary smelters inVoerde, Germany.

The furnace is energy efficient, utilising heat from both themolten metal and hot gases from the thermal oxidiser topreheat and clean the incoming metal.

In recognition of the innovative nature of the Greenmeltproject, it was supported by the Life programme, which issponsored by the European Community.

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28 Environment report

By-products and wasteWe maximise the efficiency of our processes by recyclingand selling by-products or developing applications in whichthey can be used on site (some examples are listed in Table3, page 25). Our processes generate a range of by-products,most of which have valuable applications. Only thosematerials for which no practical use exists at present areregarded as waste. During 1999 approximately 89% byweight of our by-products found useful applications.Approximately 46% were recycled within our own processes,43% were sold or reprocessed elsewhere, and 11% weresent for disposal, mainly to landfill, but some for incineration.

Internal recyclingMany process arisings that are rich in iron are recycleddirectly into the sintering process, thus reducing the amountof raw materials required. Some, however, contain impuritiesor are in a physical form that precludes direct recycling. Inrecent years, techniques have been developed to process andrecover many of these materials and a high level of recyclingand reuse of process residues and by-products is achieved atall Corus plants. At IJmuiden, for example, hydrocyclones areused to separate blast furnace gas cleaning slurries to allowrecycling along with steelmaking gas cleaning slurries anddusts, millscales and other residues, which are processed in acentral mixed waste plant to blend and prepare the materialfor reuse via the sinter plant. Blast furnace slag is sold forexternal use and Basic Oxygen Steelmaking (BOS) slag isused internally or sold. Spent pickling acid is regenerated andrefractories are either reused internally, recycled via suppliersor sold for use in construction/civil engineering applications.General waste is segregated and reused or recycled asappropriate. Some ‘problem’ materials remain, notably thehydrocyclone overflow material, but longer-term research anddevelopment work is being undertaken to identify potentialsolutions for these materials. Also, both Corus Special Profilesat Mannstaedt in Germany and Corus Special Strip atBrinsworth in the UK have developed waste segregation,recycling and reuse systems, which have both environmentaland financial benefits.

Chart 2 Materials Landfilled – Corus Group plc 1999

BOS slag 67%

Demolition waste 4%

BF slurry 2%

General waste 4%

Millscale sludge 6%

Spent pickle liquor 4%

BOS slurry 7%

Other 6%

Raw materials

Materialspreparation

Reduction and melting processes

Casting

Reheating

Rolling &extrusion

Typical products

Alumina(Aluminium oxide)

Scrap metal Coal Limestone Iron ore

Profiles Sheet andplate

Pipe Coil Rod and wire Bar Sections RailExtrusions Coil Sheet

Sinter plantCoke ovens

Blast furnace

Basic oxygen furnace (BOS)

Continuous casting

Reheating furnace

Rolling mill

Electric arc furnaceElectrolytic cell

Vertical casting

Reheating furnace

Conventional route Direct sheet route

Rolling millExtrusion

INTEGRATED STEELMAKING

ELECTRIC ARC STEELMAKING

ALUMINIUM PRODUCTS STEEL PRODUCTS

ALUMINIUM REMELTING

PRIMARY ALUMINIUMPRODUCTION

Steel and aluminium processes

Environment report 29

The steel and aluminium manufacturing processes

Case study

30 Environment report

Case Study: Corus TuscaloosaThe steel in use today will be recovered, recycled and reused by future generations

In the mid-1990s, the former British Steel increased itsrecycling capability by installing a one million tonne mini-mill at Tuscaloosa, Alabama, USA. This included anelectric arc furnace melting shop, a continuous thin-slabcaster, a heating furnace, and mill enhancements. Meetingthe stringent requirements for such a project involved closeliaison with the Alabama Department of EnvironmentalManagement. The new environmental challenges associatedwith operating such a plant included:

• Ensuring that stocks of raw materials do not contaminatesoil or groundwater by installing a two-foot (0.6m) thickclay liner under the scrap storage area, directing drainageto a retention pond, which is protected by a settling andde-oiling basin

• The development of a dog house (enclosure) to containfurnace emissions

• Filtering the extracted gases to a very high standard

• Ensuring that noise from the process and extractionsystem does not create a nuisance for those livingnearby.

Once the arc furnace was commissioned, efforts tominimise any effect on air quality and noise continued:

• Gore-tex membrane-coated filter bags have been used toreplace the original material to enable the bag house tooperate at a higher inlet temperature and use less power.This has also ensured permit compliance by improvingextraction of fumes from the melting shop.

• Bag-house extraction fans have been modified to improvetheir efficiency and to reduce the ‘rumble’ noiseemanating from the ductwork and stack.

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Environment report 31

Off-site recyclingFor many years blast furnace and electric arc furnace slags have been used in civil engineering applications andby-products from coke ovens have provided feedstocks forthe chemicals industry. Markets are being developed for the use of ferrous and ferric chloride – derived from spentpickle liquor – as effluent and water-treatment chemicals.Previously, spent pickle liquor was neutralised, with the filtercake landfilled. An active programme of market researchand development has successfully found applications inother industries for a large number of our by-products.

Waste disposalCorus operates a number of licensed landfill sites in the UK.In 1999 the company disposed of approximately 1,150,000tonnes of material to internal landfill. This represents areduction of 16% (220,000 tonnes) compared to 1997. Inaddition, approximately 46,000 tonnes are sent to externallandfill sites and a small amount (around 15,000tonnes/year) is sent for incineration. The main materialcurrently landfilled is BOS slag. Our objective is to increasethe uptake of this useful material in civil engineeringprojects and in the cement industry. We expect to achievefurther reductions as a result of continued efforts to developnew applications for previously landfilled materials.

Radioactivity in scrapRadioactive sources are highly regulated and controlled inall countries where Corus uses scrap metal. There have,nevertheless, been a few occasions when radioactivesources have been detected in material received at oursites. Since scrap is traded internationally, there is also thepossibility that such sources may be imported. Radioactivityin scrap could range from sources derived from nuclearinstallations, discrete industrial and medical sources, tonatural sources and radioactive coatings. As a safeguard,we have installed sensors to detect sources in incomingscrap. This will reduce the likelihood of radioactive materials

being melted to a very low level. Suppliers are alsoencouraged to install detectors at their premises. Whenradioactivity is detected it is usually low level and of anatural origin. All ‘finds’ are reported to the respectiveregulatory authorities, and arrangements are made for safedisposal. Because of concerns about radioactivity, we arealso installing systems to check our products, in order toreassure customers.

NoiseWe recognise that excessive noise from our operations canbe a nuisance to our neighbours and we therefore take anactive approach to monitoring and controlling noise fromboth new developments and existing sites. At IJmuiden, forexample, a noise management plan requires that periodicmeasurements are undertaken in the community duringboth the day and the night. Furthermore, a noise zone hasbeen established around the site and for those homes in theimmediate vicinity a noise reduction programme has beendeveloped, which is due for completion in 2002. At CorusEngineering Steels, Stocksbridge, in response to justifiedcomplaints from local residents, a bank is beingconstructed near the stockyard area to reduce noise levels.Visual amenity will also be improved as the bank will belandscaped and greened. This solution was discussed with,and welcomed by, local residents.

We are also actively involved in research to reduce noisegenerated by our products in use. Corus Rail, which hasmanufacturing facilities in Northern France at Hayange and at Workington in the UK, has joined with engineers and acoustics specialists from across the European RailIndustry, supported by the EC Brite Euram ResearchProgramme, to develop a system to reduce noise from rail track. After three years of extensive research anddevelopment, the new system, based on attaching tunedabsorbers to the rail, has been shown to achieve up to a 10 decibel reduction and is now ready for track trials.

32 Environment report

The effluent treatment plant at European Electrical Steelsdischarges into the River Usk at a point close to a Site ofSpecial Scientific Interest (SSSI) and salmon spawninggrounds. The regulatory authorities have specified stringenteffluent discharge quality standards in order to protect thisecosystem. After considering various improvement options,Corus installed a £2.7m ( 4.3m) high-density solids effluenttreatment system developed by Tetra. This comprises a two-stage neutralisation and direct recycle process and producesa solid residue, which is currently landfilled but has potentialfor further recovery and reuse. The quality of effluentdischarged to the river is now well within the new, morestringent, limits. The Environment Agency was activelyinvolved in the design and development of this project andresults of their independent monitoring programme haveconfirmed that performance has been significantly improved.

Case Study: Improved Effluent Treatment at EuropeanElectrical Steels, Orb, UKProtecting the local environment

Operational performance

Environment report 33

Resource use/energyIn 1999 we produced approximately 21 million tonnes ofsteel and 0.5 million tonnes of aluminium. To do this weused approximately 29 million tonnes of iron ore, 12 milliontonnes of coal, 0.6 million tonnes of oil, 4.4 million tonnes oflimestone and lime products, 0.5 million tonnes of coke and0.5 million tonnes of alumina. Our energy consumption wasapproximately 19.9GJ/tonne liquid steel and approximately16kWh/kg of primary aluminium. As detailed elsewhere inthis document, our policy is to reduce energy consumptionand raw material usage where it is necessary, practical andcost-effective. Some examples are given below.

Energy efficiency at our IJmuiden site will be improvedfollowing the start-up of a leading-edge technology direct sheet rolling plant. This will integrate the casting androlling processes such that once the plant has been fullycommissioned, steel can be cast into thin slabs, with directrolling to thin sheet (1.25mm), eliminating the need forreheating and thereby significantly reducing energyconsumption.

At Corus Special Strip, Brinsworth in the UK, students havebeen employed to form an energy and resource-savinggroup. Typical of the ideas they have generated is changingthe product-banding system from hydraulic to pneumatic,which paid for itself through savings in the cost of losthydraulic fluids while reducing the risk of pollution.

Injecting hydrocarbon materials such as coal, oil or natural gas directly into the blast furnace reduces cokerequirements and leads to an overall reduction in CO2

emissions and typically a 2% improvement in processefficiency. Of the 11 operational blast furnaces in the Corus Group, nine are equipped with coal injection and two with oil injection, which significantly reduce overallenvironmental impact and the need to import coke.

The use of in-house Combined Heat and Power (CHP)plants is an extremely efficient way of using the gases that are produced during the iron and steel productionprocess, which reduces the need to import additional fossil fuel based electricity. Until this year it has been arequirement for the power plant boilers at Port Talbot and Llanwern to be taken out of service for a statutoryoverhaul every 24 months. While out of service, anadditional 10MW of electricity (enough to supply a smalltown) has to be imported from the national grid, and gasesthat arise internally, which would otherwise have been used for power generation, have to be flared. Every effort is made to increase turnaround speed, but these necessaryoutages nevertheless cause fuels to be wasted, resulting in greater environmental impact and higher energy costs.Close liaison with technical experts and insurers, combined with improving the reliability of pressure criticalcomponents, has allowed the statutory life of the variouscomponents to be extended. More gases can now be used and less electricity is purchased, resulting in lower environmental impact and financial savings.

Product development

34 Environment report

Product development is a key part of Corus’ sustainabilitystrategy. We work with suppliers and customers to developmarket-driven solutions to improve the environmentalperformance of our products. We are committed to R&D in this area and also, as discussed earlier, have taken aleading role in the development and application of life-cycle assessment (LCA) techniques and methodologies.A number of products have been developed to addressenvironmental impacts in both manufacture and in use, as detailed in the following examples.

HyliteHylite is an aluminium sandwich, filled with plastic, whichoffers a lightweight, relatively high-strength, easilyseparated, recyclable alternative material for use in thetransport sector.

Light auto bodiesThe unique properties of steel and aluminium allowdesigners to optimise the amount of metal used in carmanufacture. For example, collaborative work in the steelsector on the Ultra-Light Steel Auto Body (ULSAB) projecthas helped produce stronger steel car bodies that are 25% lighter than conventional designs. This will bringsignificant energy and environmental benefits both during manufacture and in use, ie throughout the life of the vehicle. The combination of aluminium and steel inmultimetal solutions offers even more potential forcombining high strength with light weight.

The use of steel in constructionAs the useful life of most buildings is usually much shorterthan the life of the structure, adaptable buildings offerconsiderable environmental benefits. Steel buildings are more easily adaptable than those constructed using othermaterials. Steel frames can be adjusted, extended, unbolted and reconnected, modified, repaired, reused, or recycled as necessary. The advantages of using steel in construction are:• 100% recyclability• minimum use of materials• clean and dust-free fabrication and erection• minimum site waste• potential for off-site fabrication in a controlled environment• adaptability and flexibility over the lifetime of a building • sustainable end-of-life options such as dismantling and

reuse or demolition and recycling.

Steel sleepersSteel railway sleepers, which are manufactured by CorusRail in Workington, have been developed as an alternativeto the more traditional hardwood or concrete products.They are lighter and require less material than thealternatives.

Product developmentBetter design leads to better use of limited resources

Product development

Environment report 35

High-efficiency electric motorsMore energy-efficient electrical steels, which aremanufactured at Surahammars in Sweden and at Orb inSouth Wales, have been developed for use in the cores ofmachines such as transformers, motors and generators. As electric motors are responsible for approximately 70% of industrial energy consumption and 2% of electricitygenerated is lost through inefficiency in distributiontransformers, increased efficiency has a significant effect on both energy consumption and CO2 emissions. Forexample, a 3% efficiency improvement in medium-sizedmotors would reduce UK annual CO2 emissions by 2.5 million tonnes.

SlimdekSlimdek is a new flooring system which allows theintegration of structural and service zones in a multistoreybuilding. This minimises construction depth, so that for agiven height, more floors can be included without affectingthe dimensions of the floors themselves. The Slimdeksystem is therefore more resource efficient thanconventional flooring systems.

Lighter cansIn collaboration with the packaging industry, lighter andstronger cans have been developed. For example, throughimproved process technology we have developed a productthat is much lighter than conventional cans (see earlier casestudy). Lighter cans consume less raw materials and helpreduce the impact and cost of transport.

Aluminium roofing systemsKalflex is a new type of roofing material, consisting of a twin layer of aluminium with air insulation in between,which retains heat within the structure and thereforereduces heating costs. Kalflex is used in the Kal-Zipsystem, which can be applied in a wide variety of buildings

and has been used in the Munich Exhibition Centre, whichhas the world’s largest photo-voltaic (solar cell) roofstructure. The Kal-Zip aluminium roofing system offers apleasing appearance and provides high corrosionresistance. The solar cells are supported by aluminiumframes and together generate 1 megawatt of electricity.

Steel sheet pilingSteel sheet piling provides an environmentally friendlysolution to civil engineering problems. Extracting the pilesat the end of a structure’s useful life leaves the siteuncontaminated and the recovered piles can either bereused or recycled into new products.

Sustainable solutionsIn addition to these product developments, a number of initiatives have been launched which focus on longer term sustainable design solutions for buildings and otherproducts. These include:

• The Design Futures initiative, which has been set up toencourage and recognise excellence in sustainabledesign solutions.

• ‘City of Tomorrow’, where the key objective is to establisha centre of excellence for sustainable urban development,drawing from all parts of Corus that are involved indevising sustainable solutions. The results will be madeavailable to Corus’ business units, customers, suppliersand the research community. The ‘City of Tomorrow’strategy will strengthen Corus’ reputation for supplyinghigh value-added environmental material solutions toglobal markets. The project will explore the needs of allforms of building in cities so as to make them moreenergy, water and material efficient.

Case study

36 Environment report

The Corus Steel Packaging Recycling (CSPR) unit advisesand provides information to local authorities in the UK andcompanies using steel packaging. It promotes recycling andensures that practical and legal requirements in connectionwith recycling are understood and effectively addressed.

In the Netherlands, 77% of all metal packaging material isrecycled and similarly high levels are achieved in Germany,Norway and Belgium. In the UK this figure is 80% for the commercial and industrial sectors, but only 25% forhousehold steel packaging materials, due to insufficientrecovery systems. The CSPR unit is therefore focusing onincreasing recovery from the domestic waste sector bypromoting and advising on services for ‘kerbside collection’and ‘bring’ schemes. In 1999, 18% more metal wasrecycled from this sector than in 1998.

Our commitment to recovery and recycling goes waybeyond government requirements. Corus operates a UKnational ‘Save-a-Can’ scheme, working in partnership withlocal authorities to ensure that can-bank collection isefficient in areas where other steel can recovery schemeshave yet to be introduced. In addition, a new ‘Can Route’system has been introduced to facilitate the economiccollection of smaller quantities of steel cans from a largenumber of locations, reducing transport costs – a majorfactor in the overall economics of such schemes. Thissystem received the UK Valpak award for packagingrecycling in May 2000.

Case Study: Recycling PackagingIn the Netherlands, 77% of all metal packagingmaterial is recycled

Corus is helping to celebrate its steel-making heritage inScunthorpe, where we have donated £100,000 ( 160,000)to a project to rejuvenate Church Square, in the centre of thetown. We have also contributed over £200,000 ( 320,000)to the establishment of the Earth Centre, near CorusEngineering Steels, Rotherham.

BiodiversityMany of our sites are ideal locations for promotingbiodiversity. We work with wildlife organisations, schools andeducational establishments to assess opportunities forproviding ‘green’ initiatives, landscaping and habitats such asponds, wetlands and meadows. Within the last three yearsmore than 300,000 trees and shrubs, mostly native species,have been planted on our sites, where there is now a widerange of fauna and flora, including some rare species.

Part of the Corus Colors Shotton site has been designated asa Site of Special Scientific Interest (SSSI) following successfulmanagement of lagoons on the site which are home to thelargest breeding colony of common terns in Wales.

The Industry Nature Conservation Association on Teesside is a unique grouping of industrial and conservationorganisations, including Corus, which has advised onlandscaping the site as well as the development ofecological conservation areas. Corus has also supported amonitoring programme to assess population trends andbehavioural patterns of seals in the Tees estuary, a scientificevaluation of the state of the natural environment and thedevelopment of an ecological database for the area. Also onTeesside, Coatham Marsh is leased to the Cleveland WildlifeTrust as a wildlife centre and Corus has sponsored thedevelopment of standing water areas, hides, paths andfencing. The Trust in turn works with the site ecology cluband helps with the Corus schools liaison programme.

Corus in the community

38 Environment report

Community involvementWe are an important part of the communities in which weoperate, often providing most of the local employment. Ourresponsibilities therefore go much further than ensuring thatthe environment in these areas is not adversely affected; wealso actively participate in community initiatives and arecommitted to making a positive social contribution.

In IJmuiden, Corus donates around £140,000 ( 220,000) ayear to the local community. This amount includes contributionsto play areas, sports clubs, and funding for special occasions.In addition, we sponsor the annual Corus Chess Tournament –one of the toughest tournaments in the world. Not only do anumber of top-ranking world players participate in this event;more than 1,500 amateur players also enjoy playing every yearin Wijk aan Zee, near the IJmuiden site.

In the UK, opportunities for community involvement weregreatly enhanced when the government allowed landfill tax credits to finance local community projects. This hasenabled us to increase our contributions towards a numberof wide-ranging initiatives. For example, in South Wales,substantial contributions have been made to play areas andrefurbishing youth clubs as well as £180,000 ( 290,000) for an activity centre for children with special needs. Anoutdoor classroom has been provided in Hartlepool and ICI and Corus have each contributed £100,000 ( 160,000)to fund the Dormanstown Millennium Green Project onTeesside, which will transform 10 acres of rough ground into a green oasis where children can play safely and nature can flourish.

We have donated £50,000 ( 80,000) to a bridge-buildingproject in Saltburn Valley Gardens on the northeast coast ofEngland. This will provide access to a picturesque hiddenvalley and gardens. We have also helped finance a section ofthe Celtic Trail at Port Talbot, which will form part of the newNational Cycle Network, and £50,000 ( 80,000) has beendonated for restoration work on the Monmouth and BreconCanal, near Corus at Llanwern.

Corus in the communityMaintaining close ties with local communities andpromoting biodiversity

Validation

40 Environment report

Enviros Aspinwall has supported Corus in the planning andpreparation of this report. Corus staff have assisted us bothat a strategic and operational level. In addition, we havecompleted independent validation interviews at threeoperational sites in England, Wales and the Netherlands. We have reviewed data collection and managementsystems; assessed the scope of Corus’ environmentalmanagement programme; and commented on thecompleteness of this report. We have not carried out aformal verification of qualitative statements and quantitativedata within the scope of the validation.

Accuracy and completeness of the reportThis is the first environment report since the formation ofCorus Group plc in 1999. The development of this reporthas assisted in the integration of data-collection systemsand seeks to establish a baseline against which futuretrends can be assessed. We believe that all significantenvironmental aspects of Corus’ business activities areadequately represented in the report.

The systems for the collation of regulated environmentalperformance data are robust, but the availability of non-regulated data varies considerably at present. We supportCorus’ commitment to quantify the environmental impact oftransport. We would welcome more comprehensivereporting of resource consumption including water andenergy, waste production, reuse and disposal, and furtherimprovements in the completeness of reporting releases to air and water.

We support the setting of Corus Group targets, in additionto the continuous improvement objectives and targets. Weacknowledge that the local implementation of Group targetsis facilitated through Environmental Management Systems(EMSs) on a site-by-site basis.

Corus’ environmental management programmeEMSs are well developed within Corus, with over 50% ofoperational sites now certified to ISO 14001. This providesa basis for confidence in the environmental management ofCorus’ activities. Some parts of the Group have startedauditing major suppliers and there are plans to extend thisinitiative. The internal auditing programme has played a keyrole in transferring best practice between sites in the pastand we endorse the decision to extend this programmeacross the Group.

Recommendations for future reportsFuture reports would benefit greatly from the identificationof a more comprehensive set of key environmentalperformance indicators against which the Group’sperformance can be consistently assessed and measurabletargets set. There are also opportunities to streamline thedata-collection systems across the Group and to improvethe baseline data established by this report. We wouldwelcome discussion of the environmental impacts of raw material suppliers in future reports. Future reports will need to be more explicit about where collective andseparate performance assessments and targets of the steeland aluminium businesses are appropriate.

We welcome Corus’ commitment to incorporating theprinciples of sustainable development into businessactivities. Early recognition of the important contributionCorus can make to the challenges of climate change,sustainable product design and excellence in recycling areparticularly welcomed. We look forward to future reportsdeveloping and setting goals to demonstrate progress inthese areas.

Peter J Young, Managing Director,

Aspinwall & Company Ltd, Enviros Aspinwall

Validation

Glossary

Glossary

BOS Basic Oxygen SteelmakingBTX A by-product from cokemaking,

containing benzene, toluene and xyleneBund An enclosure designed to contain

liquids in the event of failure of a tank CO Carbon monoxideCO2 Carbon dioxideCEST Centre for Exploitation of Science

and TechnologyCHP Combined Heat and PowerChromates Chromium-based compoundsCoke oven gas Gas produced during the carbonisation

of coal in coke ovensDioxins A group of organic compounds formed

during industrial and combustion processes

Dross Secondary products from galvanising and other metal coating processes

EAF Electric Arc FurnaceFluorides Fluorine-containing compoundsFugitive Releases from non-stack sourcesGreenhouse gases Gases which contribute to global warmingHeavy metals Metals such as cadmium, copper,

mercury, nickel, chromium, lead and zincIPC Integrated Pollution Control, the

current regulatory regime for majorindustries in the UK, shortly to bereplaced by IPPC

IPPC Integrated Pollution Prevention andControl, an EC Directive

ISO International Standards OrganisationISO 14001 International environmental

management system standardLandfill Tax A UK tax on materials which are

landfilledLCA Life-Cycle AssessmentNO2 Nitrogen dioxide, one of the oxides

of nitrogenNOx Oxides of nitrogenPAHs Polyaromatic hydrocarbonsPart A Processes The largest and most significant

processes regulated by IPCPFCs PerfluorocarbonsPM10 Fine particulate matter, less than 10

microns in diameterRefractories Materials with insulating/heat resistant

properties, used to line furnacesSlags Secondary products from ironmaking,

BOS steelmaking and EAF steelmakingSO2 Sulphur dioxideSpent pickle liquor Residual material from the steel

acid-pickling processSSSI Site of Special Scientific InterestVOC Volatile organic compounds, such as

solvents

The Corus portfolio of educationalresource material includes otherenvironment and recycling informationand is available online via the Corus website.

Editorial Team: Paul Brooks, Mike Hitchcock, Marcel Hoenderdos, Eric Hutton, Hans Regtuit, Dave Taylor – Corus, Mike Gould – Michael Gould Associates

Validation: Peter Young, Rachel Barker – Enviros Aspinwall

Design: Flag Communication Ltd, UK

Principal Photography: Nick David, Ralph Hodgson.Page 39, photograph courtesy of British WaterwaysPhoto Library

Printing: Litho-tech Colour Printers Ltd

Paper: Galerie Silk, ECF and Nordic Swan accreditedfor low emissions during production

Corus Group plc15 Great Marlborough StreetLondonW1F 7AS

T. +44 (0) 20 7717 4444F. +44 (0) 20 7717 4455