Tata Steel has signed a memorandum of understanding with Klesch Group over the potential sale of its Long Products Europe business.
The agreement allows Klesch Group, which is headquartered in Switzerland, to carry out due diligence and negotiations.
Tata’s Long Products Europe divison is home to several UK-based facilities including the Scunthorpe steelworks (pictured), mills in Teesside, Dalzell and Clydebridge in Scotland, an engineering workshop in Workington and a rail consultancy in York, as well as other operations in France and Germany.
In total, the division employs 6,500 people out of Tata’s 30,500-strong workforce across Europe.
Founded in 1990, Klesch Group describes itself as “a global industrial company that acquires commodity producing companies, applies optimisation techniques to efficiently run their operations and manages risk through commodity trading strategies”.