Tata Steel UK to sell speciality steels business to Liberty House for £100m

Tata Steel UK has signed a letter of intent with Liberty House to enter into exclusive negotiations over the potential sale of its speciality steels business for £100m.

The business employs about 1,700 people and the letter covers a number of South Yorkshire-based assets including the Rotherham electric arc steelworks, the steel purifying facility in Stocksbridge and a mill in Brinsworth as well as service centres in Bolton and Wednesbury, UK, and in Suzhou and Xi'an, China.

Chief executive officer Jha Bimlendra said: “The Speciality Steels business is independent of the pan-European strip products supply chain and today’s announcement is in line with the overall restructuring strategy of the UK portfolio. This is an important step forward in seeking a future for Speciality Steels and we have reached this stage thanks to the efforts of employees, trade unions and management.

“We now look forward to working with Liberty on the due diligence and other work streams so that the sale can be successfully concluded. We will continue to work closely with trade unions and will communicate any material news on this issue to the employees on an ongoing basis.”

Roy Richkuss, general secretary of steel union Community, welcomed the news.

"This is a positive step for the UK steel industry; however there remain huge challenges which government must address. Energy costs, business rates, and procurement rules continue to put British businesses at a disadvantage.

“Community will continue with our ‘Save Our Steel’ campaign and will work with government and steel producers to secure a long term future for this vital industry.”