India-headquartered steel giant Tata Steel Group will begin the formal process to sell its UK plants by Monday, April 11, though no set time frame has been decided, according to media sources. Tata Steel will allow a reasonable period to find a buyer.
On March 30, Tata Steel had announced that, while global steel demand, especially in developed markets like Europe, has remained muted following the financial crisis of 2008, trading conditions in the UK and Europe have rapidly deteriorated more recently and have significantly impacted the long-term competitive position of the UK operations in spite of several initiatives undertaken by the management. However, even under the adverse market conditions, Tata Steel Group has extended substantial financial support to the UK business and suffered asset impairment of more than £2 billion in the last five years. Accordingly, Tata Steel stated that, following the strategic view taken by the Tata Steel board regarding the UK business, it advised the board of its European holding company, Tata Steel Europe, to explore all options for portfolio restructuring including the potential divestment of Tata Steel UK, in whole or in parts.