Tata's Teeside plant transferred to Sahaviriya Steel

Tata Steel today said it has transfered the ownership of the assets of its Teesside plant in UK to Sahaviriya Steel Industries, for which a pact was reached last month.

The company's subsidiary Tata Steel UK, which had agreed to sell certain assets of Teesside Cast Products (TCP) to Sahaviriya Steel Industries, has completed the transfer of ownership yesterday, Tata Steel said in a filing to the Bombay Stock Exchange.

The deal worth about $469 million, was signed on February 24 with Sahaviriya Steel Industries UK, a subsidiary of Thailand's largest steel producer Sahaviriya Steel Industries.

"The agreement is the most significant achievement in the 22 months since Tata Steel began an exhaustive search for an alternative future for Teesside Cast Products (TCP), after the illegal withdrawal by a consortium of off takers from a 10-year supply agreement," the company had said earlier.

The assets covered by the sale include the Redcar Blast Furnace, the Redcar and South Bank coke ovens, TCP's power generation facilities and sinter plant and the Lackenby steel making and casting facilities.

However, Tata Steel would continue to operate two large-diameter tube mills in Hartlepool, the Skinningrove special sections mill, Teesside Beam Mill and Teesside Technology Centre.

The company would also remain one of the largest private-sector employers in the area with more than 1,800 employees.

Shares of the company were trading at Rs 612.60 apiece on the BSE at 1330 hours, up 0.30% from its previous close.