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Did Tata Steel exit long products Europe business in a hurry-The 18th China(Guangzhou ) Int’l Casting product Exhibition
10/27/2016 casting expo |
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Business Standard reported that last month, Mr Roland Junck, executive chairman of British Steel, had suggested that the Scunthorpe steelworks, that Tata Steel sold in May for one pound, had become inward-looking and stopped comparing themselves with the best under its previous management. Mr Junck said the business was back in profit at an underlying level before financing costs 100 days after the sale. Mr Junck has squarely blamed the Tata Steel management and suggested that it lost interest in Scunthorpe steelworks.
As per reports in British media, the new owners of Scunthorpe were targeting a 10 per cent profit margin on its annual revenues of GBP 1.2 billion, meaning it could make a profit of GBP 120 million a year.
But officials close to the development, however, pointed out that the recovery in international steel prices and currency depreciation had helped Scunthorpe register better results. A person familiar with the plant said “If coke prices appreciate the way they are now, then it will be back to square one for Scunthorpe.”
Divestment of under-performing Corus assets happened even when Ratan Tata was the chairman of Tata group. In 2011, Tata Steel sold Teeside Cast Products to Sahaviriya Steel of Thailand for USD 467 million. In March, Tata Steel decided to explore all options for the UK business which included sale. Seven bidders were shortlisted. The process, however, was put on hold in July, on Brexit concerns.
In May, Tata Steel completed sale of its long products Europe business which included 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 to Grebull Capital LLP.
-The 18th China(Guangzhou ) Int’l Casting
product Exhibition
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