Tata Steel has agreed to sell its Long Products Europe business to investment firm Greybull Capital.
The sale includes Tata’s Scunthorpe steelworks, two mills in Teeside, a workshop in Workington, the company’s design consultancy in York, the Hayange Rail Mill in France and associated distribution facilities.
Long Products Europe employs 4,400 people in the UK and the 400 in France.
Tata Steel said the sale was subject to government approvals, transfer of contracts and the “satisfactory completion of financing arrangements”.
“The sale for a nominal consideration, would be in exchange for Greybull Capital taking on the whole of the business, including assets and relevant liabilities, and securing an appropriate funding package,” Tata Steel said in a statement.
Bimlendra Jha, executive chairman of the stand-alone Long Products Europe business, said: “Today marks a significant milestone in the sale of the Long Products Europe business.
“This sale is the best possible outcome for employees who have worked relentlessly to ensure the business’s survival, and helped to make it attractive to a potential buyer.”
Hans Fischer, chief executive of Tata Steel’s European operations, said: “Under these current challenging market conditions in Europe with the soaring levels of imports from China, we are happy that Tata Steel UK and Greybull Capital have entered the final stage of completion of the sale of shareholding in Longs Steel UK.
“This transaction will offer a future for the Long Products Europe business and its 4,400 employees in the UK.”