More than 4,000 steelworker jobs could be saved after Tata Steel agreed the sale of its European long products arm, including its Scunthorpe plant, to private equity firm Greybull Capital – for £1.
Talks about a sale began in December after production was halted at Tata’s Scunthorpe plant, as well as at two Scottish mills, resulting in 1,200 job losses.
The Scottish mills, at Dalzell and Clydebridge, have not been included in the deal.
The sale will see Greybull take on the assets and liabilities of the long products division and is contingent on the buyer “securing an appropriate funding package”.
The division employs 4,400 people in the UK and 400 in France.
Besides the Scunthorpe facility, the deal also includes two mills on Teesside, an engineering workshop in Workington, a York-based design consultancy and associated distribution facilities.
Bimlendra Jha, chairman of the long products business, said: “Today marks a significant milestone in the sale of the Long Products Europe business. This sale is the best possible outcome for employees, who have worked relentlessly to ensure the business’s survival and helped to make it attractive to a potential buyer.”
The deal comes as Tata formally launched the sale process for the rest of its UK plants, following an announcement in March that it would look for a buyer for the loss-making business.
- This version first appeared in our sister title Construction News