A letter of intent has been signed by the Liberty House Group, a global steel and engineering business, giving it exclusive negotiation rights over the potential sale of assets of Tata Steel. The assets have an enterprise value of £100m and include properties in Wednesbury, Rotherham, Stocksbridge, Brinsworth, Bolton and China.
As you may know, Tata Steel is a global speciality steels business which supplies the aerospace, automotive, oil and gas industries. It was founded in India in 1907 and now employs hundreds of workers across the UK in its two steelmaking facilities, 11 manufacturing sites and 13 distribution centres. Its site in Wednesfield, Wolverhampton, is the UK’s largest steel processing centre, and the company also has bases in Walsall and Wednesbury. Amidst a general crisis in the UK’s steel industry, Tata’s British operations have been struggling financially and the company has already sold a number of its properties since 2014.
This latest deal is part of a restructuring programme of Liberty’s UK operations. In the past year, Liberty House has also acquired other major assets in the West Midlands, as well as Scotland, Wales and Kent. If the deal with Tata goes ahead, it would support the company’s aim to increase its market share in the UK as well as internationally.
As discussions continue, Liberty has stated its ongoing commitment to continue to work closely with trade unions, work with all stakeholders in restructuring the company and help to develop a self-sustaining future for the British Steel Pension Scheme.
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