Tata Steel Europe has recently conducted a detailed portfolio review of all its businesses to assess the strategic fit and the future potential. Based on the above review, Tata Steel Europe has begun a process of seeking buyers for business units which supply products to niche markets, allowing the company to continue to strengthen its focus on strategic strip products and markets.
The sale process will cover five business units:
• Cogent, a manufacturer and processor of electrical steels based in Newport, South Wales (UK), Burlington, Canada and Surahammar, Sweden
• Kalzip, an aluminium roofing and cladding business based primarily in Koblenz, Germany
• Firsteel which coats steel for kitchen bakeware based in Walsall, West Midlands, UK
• Tata Steel Istanbul Metals, a coil coating company using steel bought on the open market, based in Adapazari, Turkey
• Engineering Steels Service Centre (Wolverhampton) which is a stockholder and processes engineering steels, based in Wolverhampton, West Midlands, UK.
As a responsible seller Tata Steel is committed to seeking the best and most sustainable future for all the businesses.
Hans Fischer, CEO of Tata Steel’s European operations, said: “These potential sales follow the successful sale of other non-core businesses in recent years, such as Long Products Europe and Speciality Steels. Under new ownership these former Tata Steel businesses have found the focus to secure a more sustainable future. In turn, these divestments have allowed us to focus resources on making significant improvements to the core strip business, as part of our ambition to develop the most sustainable steel business in Europe focused on our IJmuiden and Port Talbot value chains.
“The customer bases for the businesses being sold are distinct from the rest of Tata Steel Europe. We want to find the best owner for each of these business units who can focus on their needs to help them realise their full potential.”
And he added: “These potential sales would enable Tata Steel Europe to focus investment and management resource on its core strip products business and strategic markets.”
Following the potential sale of these business units, which employ a total of 1,100 people, Tata Steel Europe would continue to employ about 20,000 people manufacturing advanced products for the automotive, construction, engineering and packaging sectors.
For further information:
Damien Brook on T. +44 (0)7818588 545 or firstname.lastname@example.org
About Tata Steel’s European operations
Tata Steel is one of Europe's leading steel producers, with steelmaking in the UK and Netherlands, and manufacturing plants across Europe. The company supplies high-quality steel products to the most demanding markets, including construction and infrastructure, automotive, packaging and engineering. Tata Steel works with customers to develop new steel products that give them a competitive edge. The combined Tata Steel group is one of the top global steel companies, with an annual steel capacity of 27.5 million tonnes and almost 74,000 employees across five continents. The group’s revenue in the year ending March 2017 was $18.1 billion.