Tata Steel May Sell Long Products Europe Business
2014/10/28 view:
Tata Steel signed a Memorandum of
Understanding (MOU) with Klesch Group to undertake detailed due diligence and
negotiations for the potential sale of its Long Products Europe business and
associated distribution activities.
The MOU covers several UK-based assets including Tata Steel's Scunthorpe
steelworks, mills in Teesside, Dalzell and Clydebridge inScotland, an engineering workshop in Workington
and a rail consultancy inYork, as well as other
operations inFranceandGermany. About
6,500 people are employed at Long Products Europe and its distribution
facilities. Tata Steel employs 30,500 people across Europe, including 17,500 in
theUK.
Karl Koehler, chief executive of Tata Steel's European operations, said:
"We will now move into detailed due diligence and negotiations, though no
assurance can be given about the outcome. We will regularly engage with our
employees and other stakeholders throughout this process, and we will consult
with the trade union representatives and works councils."
Explaining the context and rationale for this decision, Koehler said:
"Accelerating the pace of innovation on advanced steel solutions, helping
our customers succeed in their markets and creating a sustainable asset base
requires significant capital and expertise. We have, therefore, decided to
concentrate our resources mainly on our strip products activities, where we
have greater cross-European production and technological synergies
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