Tata Steel Europe announces the results of the non-core sales process

Tata Steel Europe announced the results of its non-core business unit sales process. Tata Steel has signed a Cogent Power Inc sale and purchase agreement with Japanese steel giant JFE Shoji Trade Corporation. CPI manufactures cores for electrical distribution transformers and employs about 300 people. Buyers have already been found for Kalzip on October 2, 2018 and Firsteel on June 4, 2019, resulting in 275 jobs.

In addition, Tata Steel has decided to retain Surahammars Bruks AB, which produces advanced steel for electric vehicles and employs about 100 people. However, despite exploring all options, Tata Steel has been unable to find a way for Orb Electrical Steels and is therefore proposing to close the site with a potential loss of up to 380 jobs. In addition, Henrik Adam, CEO of Tata Steel Europe, said: “We were able to secure the future for almost 400 CPI and Surahammars Bruks colleagues. However, today's offer will be sad news for colleagues at Orb in South Wales. This is necessary, allowing us to focus our resources, including investments, on our core businesses and markets, helping us build a long-term sustainable future in Europe. ”

The company announced a potential sale of five non-core businesses in May 2018, allowing it to focus on its strategic markets. The sales process involved five business units:
Cogent, an electrical steel maker and manufacturer based in Newport, South Wales, UK, Burlington, Canada and Surahammar, Sweden, consisting of Orb Electrical Steels in Newport, South Wales; Cogent Power Inc in Burlington, Canada; Surahammars Bruks AB in Surahammar Sweden and others.