The European arm of Tata Steel Ltd. is looking to sell non-core businesses as it seeks to channel investments and resources into its core strip products and markets.
The steel producer has begun the process of seeking buyers for five business units which supply products to niche markets, Tata Steel said in its filings with the stock exchanges. These include:
- Cogent, a manufacturer and processor of electrical steels based in Newport, South Wales (U.K.), Burlington, Canada and Surahammar, Sweden.
- Kalzip, an aluminium roofing and cladding business based primarily in Germany.
- Firsteel, which coats steel for kitchen bakeware based in Walsall, U.K.
- Tata Steel Istanbul Metals, a coil coating company using steel bought on the open market, based in Adapazari, Turkey.
- Engineering Steels Service Centre (Wolverhampton) which is a stockholder and processes engineering steels, based in Wolverhampton, West Midlands, U.K.
The potential assets sale come after Tata Steel successfully offloaded other non-core businesses such as Long Products Europe and Speciality Steels, Hans Fischer, chief executive officer of Tata Steel's Europe operations said in the filing.
The divestments he said, “has allowed the company to focus its resources on making significant improvements to the core strip business as part of our ambition to develop the most sustainable steel business in Europe focused on our IJmuiden and Port Talbot value chains.”
The units that are up for sale employ a total of 1,100 individuals, the statement added.
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