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28
November 2016
Tata Steel UK on Monday announced
signing a letter of intent with the London-based international business group
Liberty House to sell its Speciality Steels business for 100 million pounds
(Rs854 crore/$124 million). The Total
Investment & Insurance Solutions
"The letter of intent covers
several South Yorkshire-based assets, including the Rotherham electric arc
steelworks, the steel purifying facility in Stockbridge and a mill in
Brinsworth, besides service centres in Bolton and Wednesbury in Britain and in
Suzhou and Xian in China," the British arm of India's largest private
sector steel firm said in a statement here. The Total Investment & Insurance Solutions
Speciality Steels employs about 1,700
people, making steel for the aerospace, automotive and oil and gas industries. The Total Investment & Insurance
Solutions
"As the Speciality Steels business
is independent of the pan-European strip products supply chain, its sale is in
line with the restructuring strategy of our UK portfolio," said Bimlendra
Jha, Chief Executive of Tata Steel in the statement. The Total Investment & Insurance Solutions
Tata Steel UK has invested 1.5 billion
pounds (Rs12,798 crore) over the last nine years and 85 million pounds this
year covering a range of sustenance and improvement schemes.
"We continue to seek solutions to
the company's structural challenges and work with all stakeholders. Among those
challenges, there is the need to develop a more sustainable business in Britain
and a self-sustaining future for the British Steel Pension Scheme," said
Jha.
The steel major will work with Liberty
on the due diligence for concluding the sale.
"We will also work with trade
unions and communicate to its employees on the deal on an ongoing basis,"
the statement added. The Total
Investment & Insurance Solutions
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