Tata Steel UK Limited, an indirect subsidiary company of Tata Steel Europe, today announced the signing of a Letter of Intent with Greybull Capital to enter exclusive negotiations for the potential sale of its Long Products Europe business.
The letter covers several UK-based assets including Tata Steel UK’s Scunthorpe steelworks, mills in Teesside and northern France, an engineering workshop in Workington, a design consultancy in York, and associated distribution facilities. It also includes Tata Steel’s Scottish mills in Dalzell and Clydebridge which are currently being mothballed.
Karl Koehler, Chief Executive of Tata Steel’s European operations, said: “This is an extremely critical time for the whole industry, and we have been working hard to explore all options that could provide a future for the Long Products Europe business.
“We will now move into detailed negotiations with Greybull Capital. It is too early to give any certainty about the potential outcome of these discussions.
“We will continue to work closely with our trade unions and works councils and will communicate any relevant news to employees on an ongoing basis.
“In the meantime, Tata Steel and our Long Products Europe business will continue to work closely with customers to deliver high-quality products.
“Accelerating innovation on advanced steel solutions, helping our customers succeed in their markets and creating a sustainable asset base remain our strategic focus.
“Tata Steel has been a hugely supportive investor in the UK steel market, having invested almost £1.5 billion in its operations. Our aim is to make our European business globally competitive.”
Bimlendra Jha, Executive Chairman of the Long Products Europe business, said: “Today’s announcement is the result of the huge effort put in by employees, trade unions and management to seek a future for the Long Products Europe business by creating a turnaround plan.
“The development of this plan, in cooperation with customers, suppliers and government, has enabled us to reach this stage, though much work remains to be done to reach a successful outcome."
About 4,700 people are employed at Long Products Europe and its distribution facilities. Tata Steel Europe employs about 30,000 people across Europe, including about 17,000 in the UK.