Tata steel may consider sale of specialty units

The Dollar Business Bureau

Tata Steel has decided to cancel the sale of its assets in the United Kingdom after many months of negotiation with the UK government and the worker unions.

Agencies said that the company has decided not to divest its majority of the share in UK steel business due to the Brexit uncertainty. They also added that the company is in preliminary talks with Thyssenkrupp, a German based company for a joint venture.

However, the company has said that the success of the joint venture depends on the results of the discussion with the developments on workers' pension schemes, British trade unions and government policy support. 

A sale of specialty steel business like the Hartlepool Pipe Mill unit with the UK operations will be considered.

The company is also planning to cut costs by 100 million euros as it goes ahead with continuing the UK business.

In March this year, Tata has announced the sale of its entire UK business which would employ about 15,000 workers. This business is a part of Corus acquisition that was undertaken by Tata in 2007.

Earlier, the company had said that the turnaround plant was unaffordable as its major unit, Port Talbot was losing 1 million pounds every day.

However, the Brexit vote has clouded its sales because a cheaper pound may now help company pan a recovery path.