Corus in talks to sell smelters in Europe

Tata Steel Ltd's UK-based subsidiary Corus today said it has entered into negotiations with Klesch & Co Ltd to sell its aluminium smelters in the Netherlands and Germany.

The two smelters together produce 2,00,000 tn of aluminium per year. Klesch has been granted a period of exclusivity for due diligence to be carried out, Corus said on its Web site.

"Any eventual sales and purchase agreement that is reached following internal consultation and advice may also be subject to certain external regulatory clearances," the company said.

Corus had started talks with American Industrial Acquisition Corp in December 2007 for the acquisition of its aluminium smelters by one of latter's affiliate companies. It has decided not to proceed with those discussions.

Corus sold off its aluminium extrusions and rolling business to US company Aleris in August 2006. Aleris makes aluminium rolled products and extrusions.

"The group will pursue the optimisation of its European assets, dispose and restructure assets that are of low-profitability and pursue differentiation of products and services," Tata Steel said in its latest annual report. The group targets to achieve 30% return on invested capital from the current 19%, it said.