by Jeff Yoders on JUNE 2, 2016
Tata Steel has sold some of its U.K. assets toGreybull Capital, reviving British Steel. Also in the U.K., the London Metal Exchange is expanding its electronic metals tracking platform.
Tata Sells UK Long Products Division to Greybull
Tata Steel has completed the sale of its long products business to Greybull Capital, in a deal that will preserve 4,400 U.K. jobs and revive the British Steel name (a spokesperson for Judas Priest was unavailable for comment).
Tata started talks with Greybull about the sale in December, three months before the Indian conglomerate decided to sell its entire U.K. business. Greybull, an investment firm, has paid a nominal £1 for the business, which makes products such as railway tracks and steel used in construction.
The sale includes the steelworks in Scunthorpe, Lincolnshire, and sites in Teesside, Workington and York. It does not, however, include Tata U.K.’s largest facility, the Port Talbot steelworks and blast furnaces in South Wales, which remain on the block and employ about 11,000 people. The long products business also employs about 400 people in France.
Workers accepted a temporary 3% pay cut and changes to terms and conditions in April as part of the deal to salvage the business, which will be renamed British Steel. The brand of the former state-owned industry disappeared in 1999 with the creation ofCorus, which Tata bought in 2007.
LME Electronic Tracking Gaining Acceptance
The London Metal Exchange is expanding its new electronic method of tracking metal in warehouses, as the system launched in April gains early traction among some western and Chinese banks, as well as warehousing and metals firms looking to cut risks.
Global metals markets were rocked two years ago by a $3 billion fraud in the Chinese port of Qingdao. A firm allegedly duplicated warehouse certificates to pledge metal as collateral for multiple bank loans, hitting companies ranging from Citic to Standard Chartered.