Tata Steel Sells Speciality Business To Liberty House
Tata Steel inks a deal with Liberty House for a division of its UK business.
Tata Steel Ltd. has entered into a definitive pact with the Sanjeev Gupta-led Liberty House Group to sell its speciality steels business in the U.K. for 100 million pounds, just over a month after the two sides begun negotiations on the possible deal.
The speciality steel division, which has around 1,700 employees, makes steel products for aerospace, automotive and oil and gas industries, according to a press release put out by Tata Steel.
The agreement includes several assets located across South Yorkshire, including the electric arc steelworks and bar mill at Rotherham as well as a steel purifying facility in Stockbridge and a mill in Brinsworth. Four services centres located in the U.K. and China will also be transferred to Liberty House.
Tata Steel U.K. ’s chief executive officer Bimlendra Jha says the proceeds from the sale will help the steel maker “realise a more sustainable future for the Port Talbot-based supply chain in the UK”.
This is the steel maker’s second sale in the United Kingdom, after it divested Scunthorpe-based Long Products business last year to investment group Greybull Capital, for a token sum of one pound. The steel maker was able to transfer a sizable chunk of its pension liability to the new owner though the deal.