Tata Steel UK (Tata Steel) has signed a definitive sale agreement to sell certain assets of Teesside Cast Products (TCP) to Sahaviriya Steel Industries UK (SSI), a subsidiary of Thailand's largest steel producer, in a deal valuing the business at $469 million.
Tata Steel Europe had put TCP on the block after the consortium of four companies backed out of its off-take agreement for TCP's special steel citing global turmoil two years back. TCP was partially mothballed in February 2010 year. Between April and December 2009, TCP lost around £150 million due to the terminated contract. Tata Steel would continue to pursue legal action against the consortium.
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 steelmaking and casting facilities. The deal will also result in Tata Steel and SSI entering into a joint venture to operate Redcar Wharf (TCP's bulk terminal), giving Tata Steel the flexibility to use Teesside to serve its other steelmaking operations, while also meeting SSI's requirements on Teesside. crackcrack
