Tata Steel UK Limited, an indirect subsidiary company of Tata Steel Europe, has signed a Letter of Intent with Greybull Capital to enter negotiations for the potential sale of its long products business in Europe.

The letter covers several UK-based assets including Tata Steel UK’s Scunthorpe steelworks, mills in Teesside and northern France, an engineering workshop in Workington, a design consultancy in York, and associated distribution facilities in the UK. It also includes Tata Steel’s Scottish mills in Dalzell and Clydebridge which are currently being mothballed.

‘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,’ said Karl Koehler, chief executive of Tata Steel’s European operations.

Potential outcome

‘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.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.’

About 4,700 people are employed at Long Products Europe and its distribution facilities. Tata Steel Europe employs about 30,000 people across Europe, including about 17,000 in the UK.

This story is reprinted from material from Tata Steel, with editorial changes made by Materials Today. The views expressed in this article do not necessarily represent those of Elsevier.