Mumbai, Feb 9 (IANS) Tata Steel UK on Thursday said it signed a definitive sale agreement to sell its speciality steels business to Liberty House Group for a total consideration of 100 million pounds.
"This is a good news for speciality steels and for Tata steel's core business in the UK. For speciality steels, which is largely independent of our European strip products supply chain, this is an important step forward in securing a future for the business under new ownership," said Tata Steel UK's CEO Bimlendra Jha.
The sale agreement covers several south Yorkshire-based assets including the electric arc steelworks and bar mill at Rotherham, the steel purifying facility in Stocksbridge and a mill in Brinsworth.
Completion of the transaction remains subject to the receipt of necessary regulatory clearances, a company statement said.
"Like our Scunthorpe-based long products business which we sold last year, we will be handing over a business which has been transformed following difficult decisions to restructure and re-focus on higher-value markets," Jha said.
Speciality steels directly employs about 1,700 people making steels for the aerospace, automotive and oil and gas industries.
The company is currently consulting with its employees on number of proposals that would structurally reduce risks and help secure a more sustainable future for its wide UK business, it said.
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