Tata Steel finalises deal to save 4,400 British jobs

Tata Steel has completed a deal for the sale of its European long steel business, including the giant Scunthorpe plant, to investment firm Greybull Capital.

The Indian conglomerate has been in talks with Greybull since December about the sale of its long steel business, three months before the sale of its entire UK-based business was announced.

Besides the Scunthorpe-based steelworks, Tata Steel has sold mills in Teesside, Lincolnshire, Workington, York and Northern France, which in total employs 4,800 people.

Workers have accepted a temporary 3% pay cut in April as part of the negotiations to save the business, which will now be renamed British Steel, the brand of the original state-owned industry.

Bimlendra Jha, executive chairman of the long products Europe business and CEO of Tata Steel UK, said: "As a responsible seller, Tata Steel is delighted to have secured a buyer for this business and we hope that under Greybull ownership, the business will continue the momentum of the improvement programme that has been initiated in the last 12 months."

Although a deal for Tata’s long steel business has been announced, the rest of the UK business, including the blast furnaces at Port Talbot in south Wales and in total 11,000 jobs across the country, were not mentioned.

Bidders for the UK steelmaking facilities sent proposals last week, with the UK government offering to provide loans and guarantees to a buyer in order to save the business. Tata are also considering keeping the business as a result of the government’s offer.

Tata Steel www.tatasteeleurope.com

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