Tata Steel has agreed a deal with the UK-based Greybull Capital to sell its long products arm at Scunthorpe amid raging questions over the future of its another loss-making plant in Port Talbot.
Zee Media Bureau
New Delhi: Tata Steel has struck a deal with Greybull Capital to sell its UK plant at Scunthorpe. The deal is expected to be completed over 8 weeks.
As per reports, Greybull is arranging 400 million pound financing package to complete the buyout. The reports say that the plant will be renamed as British Steel, though no change in the management will take place, though workers are being asked a pay cut and leaner pension arrangements.
As per reports the deal wiuld include plant at Scunthorpe, two mills in Teesside, an engineering workshop in Workington, a design consultancy in York, a mill in Hayange, France and sales and distribution facilities.
Scunthorpe unit of Tata Steel accounts for 15% of Tata Steel's Europe capacity.
The unit of Tata Steel was making losses, and the deal is likely to help secure around 4000 jobs in the plant.
Tatas have named KPMG, Slaughter and May as its advisors.
Tata Steel had entered into a memorandum of Intent with Greybull Capital in December 2015 to enter exclusive negotiations for the potential sale of its long products Europe business.
The company's earlier memorandum of understanding with the Klesch Group failed to see light of the day.
The company has also been making attempts to find a buyer for its Port Talbot site, which employs 5,500 of Tata UK's current 15,000-strong UK workforce. The site is reported to be losing 1million pound a day