Tata Steel UK has said it has completed the sale of its 42- and 84-inch pipe mills in Hartlepool to Liberty House Group. The sale includes the 42-inch and 84-inch pipe mills, also known as the Submerged Arc Weld (SAW) mills, where about 140 employees manufacture pipeline for gas and oil projects around the world, an official statement issued on Tuesday said. The two mills are fed with steel plate sourced from outside Tata Steel, and hence independent of the company’s strip products supply chain.

However, Tata Steel will retain its 20-inch tube mill at the same Hartlepool site and is poised to make a £1 million investment at the unit which has around 270 employees.The 20-inch mill makes tubes for a range of markets, including construction, infrastructure and machinery. Tata Steel will be making a £1 million investment to strengthen the 20-inch mill and increase its capability to make high-strength steel tubes. Unlike the two other mills, the 20-inch mill is supplied with steel coils from Tata Steel’s European steelworks and is part of its strip products supply chain. The size of the latest deal, involving the two pipe mills, was not disclosed by the company.

Commenting on the development Bimlendra Jha, CEO of Tata Steel UK, said: “As a responsible seller it was important for us to find the most sustainable future for the 42- and 84-inch pipe mills. With this sale, Tata Steel UK completes its portfolio restructuring to focus on the strip products supply chain linked to Port Talbot.”

The transaction completed the restructuring of Tata Steel’s UK steel business. Post restructuring, Tata Steel said it will continue to be the largest steelmaker in the UK, will employ almost 8,500 people in the UK, manufacturing steel used in automotive and construction sectors.

 

Source:economictimes.indiatimes.com

Report Abuse