Steel crisis: 4400 UK jobs saved as Tata secures buyer for European business
Tata Steel UK has this morning (June 1) announced the completion of a deal to sell its Long Products Europe business to London-based investment firm Greybull Capital LLP, safeguarding thousands of jobs.
While no buyer has yet been secured for Tata’s beleaguered UK operations, the firm managed to sell off its European unit following the implementation of a 12-month transformation plan, which included the restructuring of assets and refocusing the business on higher value markets.
Tata Steel UK CEO Bimlendra Jha, who is also executive chairman of Long Products Europe, commented: “As a responsible seller, Tata Steel is delighted to have secured a buyer for this business and we hope that under Greybull ownership, the business will continue the momentum of the improvement program that has been initiated in the last 12 months.
“Employees and trade unions have worked closely with the Long Products Europe management team to improve the business’s prospects, putting it in a more competitive position than it has been for many years.”
He added: “It is through their dedication and hard work that we are in this position today in spite of continued challenges in the market.”
As of today, Tata’s Long Products Europe business – which includes two mills in Teesside, the Scunthorpe steelworks, a York-based design consultancy, an engineering workshop in Workington and various distribution facilities, in addition to a rail mill in the north of France – will trade as British Steel.
In total, Long Products Europe employs 4,400 people in the UK and a further 400 in France.
Tata is now considering bidders for the remainder of its UK steel operations, with the preferred buyer expected to be announced by June 24.
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