Tata Steel set to sell UK plants

Tata Steel has announced it plans to sell its Long Products division that employs 6,500 people in the UK and Europe, according to the British Broadcasting Corporation.

Tata has signed an agreement with Klesch Group in hopes of it leading to a sale. Operations in Scunthorpe and Teeside in England, and Dalzell and Clydebridge in Scotland are to be amongst some of the affected plants.

Also included are sites in Workington and York, as well as other operations in France and Germany. However, the sheet and speciality steel operations in South Wales and South Yorkshire remain unaffected.

The Long Products division accounts for about a third of the company’s employees, and if the sale goes ahead it will reduce the number of employees from 17,500 to 11,500.

Karl Koehler, chief executive of Tata Steel’s European operations, said: “We will now move into detailed due diligence and negotiations, though no assurance can be given about the outcome.”

Gary Klesch, who runs the Klesch Group, explained: “We believe there is a growing market for the first class products made by this business and we intend to capitalise on this demand.”

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