Indian steelmaker Tata Steel has announced the signing of a memorandum of understanding with Switzerland-based Klesch Group to undertake detailed due diligence and negotiations for the potential sale of its long products division in Europe and associated distribution activities.
The memorandum covers several UK-based assets including Tata Steel's Scunthorpe steelworks, 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.
The company said that it has decided to concentrate its resources mainly on its strip product activities, where it has greater cross-European production and technological synergies.
According to Tata Steel's statement, the European steel industry is emerging from one of the most challenging economic periods in its history. Tata Steel has invested £1.2 billion in its UK operations and trained 1,200 UK apprentices and graduates since acquiring Corus in 2007.