Tata Steel in talks with Greybull for sale of Scunthorpe steelworks

Tata Steel is now holding talks to sell its Long Products Business to Greybull Capital.

The Indian conglomerate’s long-products arm, of which the Scunthorpe plant forms the core, has been hit by a global steel crisis as prices continue to drop.

Tata Steel initially planned to sell this part of the business by April next year, but now the company has signed a letter of intent with Greybull Capital to enter exclusive negotiations.

The letter includes several of Tata Steel’s UK-based assets including Scunthorpe steelworks, mills in Teesside, an engineering workshop in Workington, a design consultancy in York, and associated distribution facilities.

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, added: “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.”

Tata Steel Europe employs about 30,000 people across Europe, including about 17,000 in the UK.

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