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Tata Steel to sell UK business

Xinhua, March 31, 2016 Adjust font size:

The India steel giant Tata said Wednesday it has advised Tata Steel Europe to explore all options for portfolio restructuring including the potential divestment of Tata Steel UK, in whole or in parts, amid the deep concern about the deteriorating financial performance of the British subsidiary.

In a statement, the Tata Steel Board noted under adverse market conditions, the Tata Steel Group had extended substantial financial support to the UK business and suffered asset impairment of more than 2 billion pounds (2.88 billion U.S. dollars) in the last five years.

The Board concluded that it would not be able to support the investment necessary to proceed with the proposed Strip Products UK Transformation plan. And discussions will also continue with Greybull in relation to a sale of the UK Long Products business.

British Business Secretary Sajid Javid said the "UK steel industry is absolutely vital for the country. We will look at all viable options to keep steel making continuing in Port Talbot." But nationalisation is not the answer for the Port Talbot steel works in Wales.

Tata Steel UK employs about 15,000 people, with 5,500 employees in Port Talbot. The statistics shows the steel industry employed 18,000 people directly in 2014.

Established in 1907 as Asia's first integrated private sector steel company, Tata Steel Group is among the top global steel companies. With a turnover of 22.32 billion U.S. dollars in FY 2015, it has over 80,000 employees across five continents. Endit