Reportedly the Tata Steel Ltd said on Monday it would shut parts of its non-core businesses in the united kingdom, a move that could cost about 400 jobs. Meanwhile the steelmaker proposed to close its loss-making Orb Electrical Steels site in south wales, potentially affecting up to 380 jobs, as it was "unable to find a way forward" for the business, it said in a filing to Indian stock exchanges.
Furthermore Tata put up five of its non-core businesses in Europe on sale in May 2018 as it looked to focus on its strip products business and Orb is part of one of these businesses, Cogent, which makes electrical steels. Henrik Adam, chief executive officer of Tata Steel's European operations said "Continuing to fund substantial losses at Orb Electrical Steels is not sustainable at a time when the European steel industry is facing considerable challenges". Adam said the company saw no prospects of the business returning to profitability in the coming years.
Moreover Tata added it had signed a deal to sell Cogent Power, another division of Cogent, to japan's JFE Shoji Trade Corp. Apparently the news comes weeks after turkey's military pension fund OYAK reached a provisional agreement to take over British Steel, which Greybull Capital bought for one pound from Tata Steel three years ago, potentially saving thousands of jobs. British Steel was put into compulsory liquidation on May 22 after Greybull Capital failed to secure funding to continue its operations.
