Tata Steel UK, a subsidiary of Tata Steel, has signed a definitive sale agreement to sell its Specialty Steels business to Liberty House Group for a total consideration of 100 million pounds. The sale agreement covers several South Yorkshire-based assets including the electric arc steelworks and bar mill at Rotherham, 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. Specialty Steels directly employs about 1,700 people making steels for the aerospace, automotive and the oil & gas industries.
Completion of the transaction remains subject to the receipt of necessary regulatory clearances. The parties will also be working to complete consultation with employees and the transfer of supplier and customer contracts. Tata Steel and Liberty House Group have worked constructively together to finalise the agreement.
Tata Steel UK is currently consulting with its employees on number of proposals that would structurally reduce risks and help secure a more sustainable future for its wider UK business. It is also in discussions with the British Steel Pension Scheme trustee and the Pension Regulator to develop a structural solution for its UK pension scheme in the coming months.