Tata Steel to save 1,700 jobs with £100m sale of speciality steels business

Thousands of jobs could be saved if a £100m deal to sell Tata Steel’s speciality steel business to Liberty House Group is completed.

The Indian conglomerate has announced the signing of a Letter of Intent with Liberty House Group to enter into exclusive negotiations.

The Letter of Intent covers several South Yorkshire-based assets including the Rotherham electric arc steelworks, the steel purifying facility in Stocksbridge and a mill in Brinsworth as well as service centres in Bolton and Wednesbury, UK, and in Suzhou and Xi’an, China.

Speciality Steels employs around 1,700 people making steels for the aerospace, automotive and the oil & gas industries.

The deal is expected to be completed early in the first quarter of 2017.

Bimlendra Jha, CEO of Tata Steel UK, said: “The Speciality Steels business is independent of the pan-European strip products supply chain and today’s announcement is in line with the overall restructuring strategy of the UK portfolio.

“This is an important step forward in seeking a future for Speciality Steels and we have reached this stage thanks to the efforts of employees, trade unions and management.

“We now look forward to working with Liberty on the due diligence and other work streams so that the sale can be successfully concluded. We will continue to work closely with trade unions and will communicate any material news on this issue to the employees on an ongoing basis.

Bimlendra also added: “We continue to actively 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 the UK as well as a self-sustaining future for the British Steel Pension Scheme.”

Roy Rickhuss, general secretary of steel union Community, commented: “After months of uncertainty and delay from Tata, this will be welcome news for the thousands of steelworkers whose jobs depend on the success of this business.

“Community has worked with Liberty House Group at steel sites across the UK, and I have already spoken with the company about the next steps in this process.

“The number one priority for Community will be ensuring that Liberty have a proper plan to protect jobs and provide the long term investment necessary to grow the business. Crucial to this plan will be ensuring that the business’ loyal workforce have a pension plan that provides dignity and security in retirement.”

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