Tata Steel has announced Tata Steel UK will receive a $130m (£79m) settlement figure in the long-running case it has fought against the consortium of buyers which terminated a ten-year contract with the Teesside Cast Products plant after just three years.
The consortium of four international slab buyers was contracted to buy 78% of the plant’s production over ten years. When they pulled out of the contract in 2009 it led to the mothballing of the plant, a loss of jobs for 1,700 workers and the eventual plant sale to Thai steelmaker SSI.
In January, Tata Steel UK reported it would receive a partial final reward after the arbitral tribunal found that the offtakers did not validly terminate their offtake agreements. The arbitration proceedings were held under the auspices of the ICC International Court of Arbitration.
A statement from Tata Steel said: “Following that partial final award, a commercial settlement to all disputes relating to the offtake agreements was reached and on June 21, 2011 Tata Steel completed a full and final settlement of claims with the consortium of former offtakers. As a result of this settlement, Tata Steel has received an aggregate sum of approximately US$130m.”