Tata Steel UK has completed the sale of its long products Europe business to investment firm Greybull Capital for £1.
The long products Europe business includes the Scunthorpe steelworks, two mills in Teeside, an engineering workshop in Workington, a design consultancy in York, and associated distribution facilities, as well as a rail mill in northern France. It employs 4,800 people, 4,400 in the UK and 400 in France. It will now trade under the name of British Steel.
Tata Steel UK CEO Bimlendra Jha said he hoped the sale would continue the momentum of the improvement programme that has been initiated in the last 12 months.
“Employees and trade unions have worked closely with the Long Products Europe management team to improve the business’s prospects, putting it in a more competitive position than it has been for many years,” he said.
“It is through their dedication and hard work that we are in this position today in spite of continued challenges in the market”.
Tata Steel agreed to sell part of its long products Europe business to Greybull Capital in April. As part of the deal, staff at the Scunthorpe plant were asked to accept a 3% pay cut, as well as reduced pensions contributions.