Tata Steel Ltd, one of the world’s
largest steel producers said it is in talks to sell loss-making European
operations including mills in northern England and Scotland to Geneva-based
Klesch Group, as it battles weak prices and tentative economic recovery.
In a statement, Tata Steel said it had
agreed to negotiate with Klesch over its Long Products division, which serves
the construction and engineering industries and employs 6,500 people in Britain
and Europe.
Karl Koehler, chief executive of Tata
Steel's European operations, said the group would now focus on strip products,
a higher-margin category of steel which is used in cars, construction
components, white goods and packaging.
Koehler declined to give a value for the
potential sale or to disclose losses by the division. But he said the
operations being put up for sale were "close" to breaking even.
Tata's long products division makes wire
rods, plates and semi-finished steel for markets including construction,
shipbuilding, rail and engineering.
Tata has an annual crude steel capacity
of 29 million tonnes a year. Tata Steel moved into Europe less than a decade
ago, with its $13 billion acquisition of Britain's Corus, but has been forced to
consistently slash costs and jobs.
No comments:
Post a Comment