New Delhi: Tata Steel today said it has completed sale of its European long steel business, including the giant Scunthorpe plant, to Greybull Capital LLP. Besides Scunthorpe steelworks in England, Tata Steel has sold mills in Teesside and northern France, which employ a total of 4,800 people, the company said in a statement.
The sale is for a "nominal" fee, it said.
"Tata Steel UK today announced the completion of the sale of its Long Products Europe business to Greybull Capital LLP," the statement said.
The company, which had in March announced plans to sell all its UK operations after years of losses, had been in exclusive talks for the long products business with London-based private equity firm Greybull since December. Greybull had previously said it will invest 400 million pounds (USD 569 million) in the new business.
"From today the Long Products Europe business, which in the UK includes the Scunthorpe steelworks, two mills in Teesside, an engineering workshop in Workington, a design consultancy in York, and associated distribution facilities, as well as a rail mill in northern France, will trade under the name of British Steel. All together the business employs 4,800 people 4,400 in the UK and 400 in France," it said.
Tata Steel said, in last one year, the Long Products Europe business has implemented a transformation plan
including a portfolio restructuring of assets, underpinned by committed support from employees and their trade unions.
"This has focused the business on higher-value markets supported by a more competitive cost base," it said.
Bimlendra Jha, Executive Chairman of the Long Products Europe business and CEO of Tata Steel UK, said: "As a responsible seller, Tata Steel is delighted to have secured a buyer for this business and we hope that under Greybull ownership, the business will continue the momentum of the improvement programme that has been initiated in the last 12 months."
He said employees and trade unions have worked closely with the Long Products Europe management team to improve the business' prospects, putting it in a more competitive position than it has been for many years.
"It is through their dedication and hard work that we are in this position today in spite of continued challenges in the market," he added.
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Updated Date: Jun 01, 2016 12:17:07 IST