Tata Steel’s European arm Corus on Friday entered into a pact with Thailand-based Sahviriya Steel Industries to sell its Teesside Cast Products plant in the UK for about $500 million.
“Corus UK Ltd and Sahaviriya Steel Industries Public Company Ltd today signed a Memorandum of Understanding which sets out the scope of a potential transaction whereby SSI would acquire from Corus the Teesside Cast Products (TCP) business in a transaction valued at approximately $500 million,” Tata Steel said in a statement here.
Tata Steel said that the deal, if successfully concluded, is expected to create a significant number of new jobs at the plant in addition to TCP’s existing workforce of over 700 and will provide a considerable boost to the local economy.
“The assets covered by the MoU include the Redcar and South Bank coke ovens, TCP’s power generation facilities and sinter plant, the Redcar Blast Furnace and the Lackenby Steelmaking facilities,” it added.
Corus MD and CEO Kirby Adams said, “We are very pleased to announce this significant progress in our long-held objective to sell the TCP assets to a strategic industry investor.