Tata Steel to Sell Off UK Assets
India's largest steel producer, Tata Steel Ltd is now considering the sale of some of its assets located in the UK, The decision was reached after the continued weak demand from a staggering economy leaves many factories either shut down or underutilized. This was confirmed by two individuals who spoke on condition of anonymity.
The UK subsidiaries absorbed were part of its takeover of Corus Group Plc in 2007. When sold, the company would be able to cut its outstanding debt according to the sources. Another part considered to be included in the sale are its Australian operations. There was no indication which specific assets that would be sold off.
There are three major assets owned by the steel giant in the UK, totalling a capacity of 10.6 million metric tons each year. These are a mill at Port Talbot in West Glamorgan in Wales and a steel plant at South Humberside, England.
Tata Steel spokesperson Charudatta Deshpande declined to provide a comment on the proposed sale when emailed questions. Tata Steel has a total of US $5.5 billion bonds redeemable and loans payable by November 2016 according to data from Bloomberg.