Tate Steel has sold its Speciality Steels business, which has operations in Yorkshire and the Midlands, to Liberty House Group in a deal worth £100m.
Speciality Steel boasts several South Yorkshire-based assets including the electric arc steelworks and bar mill at Rotherham, the steel purifying facility in Stocksbridge and a mill in Brinsworth as well as service centres in Bolton and Wednesbury, UK, and in Suzhou and Xi'an, China.
The company directly employs about 1,700 people making steels for the aerospace, automotive and the oil and gas industries.
Bimlendra Jha, CEO of Tata Steel UK, said: “This is good news for Speciality Steels and for Tata Steel’s core business in the UK.
“For Speciality Steels, which is largely independent of our European strip products supply chain, this is an important step forward in securing a future for the business under new ownership.
“The news also marks another important step forward in realising a more sustainable future for our Port Talbot-based supply chain in the UK.”
Jha added: “Like our former Scunthorpe-based Long Products business which we sold last year, we will be handing over a business which has been transformed following difficult decisions to restructure and re-focus on higher-value markets.
“Employees, trade unions and the management team have worked incredibly hard at Speciality Steels to improve its performance and I’m delighted to say that the business is now on an improvement track which will enable it to thrive in the future.”
Completion of the transaction remains subject to the receipt of necessary regulatory clearances. The parties will also be working to complete consultation with employees and the transfer of supplier and customer contracts.