Tata Steel in talks over sale of UK as­set to Lib­erty House

The Myanmar Times - - Business -

IN­DIA’S Tata Steel has agreed to start ex­clu­sive talks for the sale of its spe­cial­ity steel as­sets to metal pro­cess­ing firm Lib­erty House.

The unit, which has ac­tiv­i­ties mostly in Bri­tain but also in China, em­ploys 1700 peo­ple and pro­duces spe­cialised steel for the aerospace and au­to­mo­tive in­dus­tries, as well as the oil and gas sec­tor.

How­ever, Tata Steel gave no up­date on the fu­ture of the rest of its UK as­sets – in­clud­ing Bri­tain’s big­gest steel plant at Port Tal­bot.

Ear­lier this year, Tata Steel de­cided to off­load its loss-mak­ing Bri­tish as­sets, blam­ing the move on a global over­sup­ply of steel, cheap im­ports into Europe from coun­tries in­clud­ing China, high costs and cur­rency volatil­ity.

“Tata Steel UK an­nounced the sign­ing of a let­ter of in­tent with Lib­erty House Group to en­ter into ex­clu­sive ne­go­ti­a­tions for the po­ten­tial sale of its spe­cial­ity steels business for an en­ter­prise value of £100 mil­lion (US$125 mil­lion),” it said in a state­ment.

The ac­tiv­i­ties com­prise sev­eral as­sets in north­ern Eng­land, in­clud­ing an elec­tric arc steel­works in Rother­ham, a steel pu­ri­fy­ing fa­cil­ity in Stocks­bridge and a mill in Brinsworth.

The business also in­cludes ser­vice cen­tres in Bolton, in Bri­tain’s north west, and Wed­nes­bury in cen­tral Eng­land, as well as two fa­cil­i­ties in the Chi­nese cities of Suzhou and Xi’an.

Tata Steel in May sold its loss-mak­ing Euro­pean long prod­ucts divi­sion to in­vest­ment firm Grey­bull Cap­i­tal, who re­named it Bri­tish Steel. –

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