Companies

Tata Steel in deal to sell Teesside plant to Thai co

Vidya Ram London | Updated on February 25, 2011 Published on February 25, 2011

Tata Steel UK has ended its 22-month search for a buyer for Teesside Cast Products in northeast England after striking a deal with Thai firm Sahaviriya Steel Industries, which values the business at $469 million.

The two firms have signed a definitive sale agreement for certain assets at the plant on Thursday. The sale is expected to be completed by the end of March, the firms said.

Discussions between SSI and Tata Steel began in August 2010, following months of speculation about prospective bidders.

Tata Steel partially mothballed the plant in February last year, after a consortium of slab buyers pulled out halfway through a 10-year agreement.

Retaining presence

Mr Karl-Ulrich Koehler, CEO of Tata Steel in Europe. said the firm would retain a major presence in Teesside, and that following the acquisition it would continue to have over 1,800 employees in the area.

Published on February 25, 2011
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