Shares of Tata Steel
are currently down 3%.
The company announced updates on the outcome of sales process for its non-core businesses.
The company announced in May 2018 the potential sale of five non-core businesses, enabling it to strengthen its focus on its strategic markets. Buyers have been found for Kalzip and Firsteel , helping to secure 275 jobs.
One of the five non-core businesses was Cogent Electrical Steels, which is made up of:
1. Orb Electrical Steels, in Newport, South Wales
2. Cogent Power Inc, in Burlington, Canada
3. Surahammars Bruks AB, in Surahammar, Sweden.
Tata Steel has signed a sales and purchase agreement for Cogent Power Inc (CPI), with Japanese steel giant JFE Shoji Trade Corporation. CPI manufactures cores for electrical distribution transformers and employs nearly 300 people.
Furthermore, Tata Steel has decided to retain Surahammars Bruks AB, which makes advanced steels for electric vehicles and employs around 100 people.
However, despite exploring all options, Tata Steel has been unable to find a way forward for Orb Electrical Steels and so proposes to close the site, with the potential loss of up to 380 jobs.
Henrik Adam, CEO of Tata Steel’s European operations, said: “We have been able to secure the future for almost 400 colleagues in CPI and Surahammars Bruks. However, today’s proposal will be sad news for colleagues at Orb in South Wales. This is necessary, enabling us to focus our resources, including investment, on our core business and markets, helping us build a long-term sustainable future in Europe.
Tata Steel Ltd is currently trading at Rs335.20 down by Rs9.75 or 2.83% from its previous closing of Rs344.95 on the BSE.
The scrip opened at Rs341.60 and has touched a high and low of Rs341.60 and Rs332.10 respectively. So far 45,75,767 (NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs38,862.66cr.