Tata Steel Letter Of Intent To Sell Long Products Steel Business To Greybull Capital Is A Welcome Development Says GMB
It is essential that the UK Government plays a full part in securing a level playing field to enable this essential industry to survive and thrive says GMB.
GMB, the union for steel workers, commented on the announcement that Tata Steel signed a Letter of Intent with Greybull Capital to enter exclusive negotiations for the potential sale of its Long Products Europe business. See notes to editors for copies of press statements by Tata Steel and Greybull Capital.
About 5,000 people are employed at Long Products Europe and its distribution facilities. The main facilities are based at Scunthorpe integrated steelworks, including its mills; Teesside Beam Mill, Lackenby; Special Profiles, Skinningrove; Dalzell Plate Mill and Clydebridge Quench & Temper Mill.
David Hulse, GMB National Officer, said "GMB see this news as a welcome development. The next step is the due diligence process and we expect local GMB representatives to be fully involved.
This is an exceptionally challenging time for the UK steel industry. It is essential that the UK Government plays a full part in securing a level playing field to enable this essential industry to survive and thrive."
Contact: Dave Hulse 07971 266157 or Michael Blench 07870 176 748 Kathleen Walker Shaw in Brussels 07841 181549 or Jim Moohan, GMB Scotland on 07885 868405 or Shaune Clarkson, GMB Scunthorpe 07738 767561 or Jeff Beck in Wales on 07980 753 112 or Russell Farrington in West Midlands 07957 266519 or GMB press office 07921 289880 or 07974 251 823.
Notes to editors
1 Copy of press release dated 22 December 2015.
Tata Steel press release
Letter of Intent signed for potential sale of Long Products Europe
22 December 2015: Tata Steel has today announced the signing of a Letter of Intent with Greybull Capital to enter exclusive negotiations for the potential sale of its Long Products Europe business.
The letter covers several UK-based assets including Tata Steel’s Scunthorpe steelworks, mills in Teesside and northern France, an engineering workshop in Workington, a design consultancy in York, and associated distribution facilities. It also includes Tata Steel’s Scottish mills in Dalzell and Clydebridge which are currently being mothballed.
Karl Koehler, Chief Executive of Tata Steel’s European operations, said: “This is an extremely critical time for the whole industry, and we have been working hard to explore all options that could provide a future for the Long Products Europe business.
“We will now move into detailed negotiations with Greybull Capital. It is too early to give any certainty about the potential outcome of these discussions.
“We will continue to work closely with our trade unions and works councils and will communicate any relevant news to employees on an ongoing basis.
“In the meantime, Tata Steel and our Long Products Europe business will continue to work closely with customers to deliver high-quality products.
“Accelerating innovation on advanced steel solutions, helping our customers succeed in their markets and creating a sustainable asset base remains our strategic focus.
“Tata Steel has been a hugely supportive investor in the UK steel market, having invested almost £1.5bn in its operations. Our aim is to make our European business globally competitive.”
Bimlendra Jha, Executive Chairman of the Long Products Europe business, said: “Today’s announcement is the result of the huge effort put in by employees, trade unions and management to seek a future for the Long Products Europe business by creating a turnaround plan.
“The development of this plan, in cooperation with customers, suppliers and government, has enabled us to reach this stage, though much work remains to be done to reach a successful outcome."
About 5,000 people are employed at Long Products Europe and its distribution facilities. Tata Steel employs about 30,000 people across Europe, including about 17,000 in the UK.
For further information contact:
- Damien Brook on +44(0)7951 989490
- Enda Joyce on +44(0) 7980916827
- Keri Sutherland on +44(0) 7581 277970
- Greg Wood on +44 20 3772 2587 or +44 7990 003 588
Notes to editors:
Tata Steel’s Long Products Europe business is made up of the following facilities:
• Scunthorpe integrated steelworks, including its mills
• Teesside Beam Mill, Lackenby
• Special Profiles, Skinningrove
• Dalzell Plate Mill
• Clydebridge Quench & Temper Mill
2 22 December 2015 - Greybull Statement re Letter of Intent with Tata Steel
Greybull Capital LLP confirms that it has signed a Letter of Intent with Tata Steel to enter exclusive discussions on the possible acquisition of the Long Products Europe business based in Scunthorpe, North Lincolnshire. Whilst this is an important milestone, much work remains to be done to reach a successful outcome.
Greg Wood: +44 20 3772 2587 / 07990 003 588
Tom Cahn: +44 20 3772 2586 / 07917 242 078
Notes to Editors
About Greybull Capital
Greybull is a family investment office with significant investments in various sectors including aviation, pharmaceuticals, semiconductors, energy, industrials, retail and leisure across UK, mainland Europe and the US. Within its UK portfolio Greybull’s family trusts own and control several companies including The Monarch Group, My Local, Plessey Semiconductors Limited and Arc Specialist Engineering Limited.