Tata Steel has announced its intention to sell off a number of its European assets including rail manufacturing sites in Scunthorpe and Hayange.
The Mumbai-headquartered steel manufacturer has signed a Memorandum of Understanding (MoU) with Klesch Group, a global commodities business, to enter into negotiations for Tata Steel’s Long Products Europe business, which includes manufacturing and distribution sites across the UK, France and Germany.
As well as rail mills in Scunthorpe and Hayange, the sale includes the company’s rail consultancy in York.
Tata Steel, which employs more than 30,000 people across Europe, said the company has decided to focus on its strip products business across Europe.
Tata Steel chief executive Karl Koehler said: “We’ve improved the competitiveness of Tata Steel’s European operations, including Long Products Europe which now supplies more of the innovative steel rail, rod, plate, sections and special profile products demanded by customers.
“Accelerating the pace of innovation on advanced steel solutions, helping our customers succeed in their markets and creating a sustainable asset base requires significant capital and expertise.”
Both parties will now begin detailed due diligence and have assured employees and stake holders that they will be consulted throughout the process.