Tata Steel slips 4% as it proposes to shut two UK-based plants

Tata Steel slipped up to 3.7 per cent to quote at Rs 332.10 during the morning deals on Tuesday after the company proposed to close two non-core business units in the United Kingdom.
 

“The company (had) announced in May 2018 the potential sale of five non-core businesses, enabling it to strengthen its focus on its strategic markets. Buyers have been found for Kalzip and Firsteel, helping to secure 275 jobs,” it said in a BSE filing. READ HERE

The company added it had signed a sales and purchase agreement with Japanese steel giant JFE Shoji Trade Corporate for Cogent Power Inc (CPI), which is part of Cogent Electrical Steels, one of the five non-core businesses. Cogent Electrical Steels, however, is made up of Orb Electrical Steels in Newport South Wales and Surahammars Bruks AB in Sweden, apart from CPI in Burlington, Canada.
 

“Tata Steel has decided to retain Surahammars Bruks AB, which makes advanced steels for electric vehicles and employs around 100 people… However, despite exploring all options, Tata Steel has been unable to find a way forward for Orb Electrical Steels and so proposes to close the site, with the potential loss of up to 380 jobs,” it said.

At 10:57 am, the scrip was trading 2.5 per cent lower at Rs 336.2 apiece on BSE. In comparison, the S&P BSE Sensex was ruling 400 points, or 1.07 per cent, lower at 36,938.

After the collapse of Tata Steel Europe’s proposed tie-up with ThyssenKrupp, the company's aim is to make the European business self-sufficient and cash positive. Tata Steel has invested £2 billion in its UK business since the acquisition of Corus in 2007, including £100 million last year. READ MORE