Tata SteelBSE 1.15 % is considering the sale of its entire UK business to stem heavy losses, a move after almost a decade-long unsuccessful foray into Britain. Tata Steel said the financial performance of its UK arm had deteriorated substantially in last 12 months, after years of weak conditions. With high manufacturing costs, weakness in demand and increased imports the company doesn’t see much improvement in future. Tata Steel Europe has not been able to turn profit since Tatas’ takeover of Corus in 2007 for $8.1 billion, despite numerous rounds of restructuring, job cuts, asset sales and modernisation. Tata Steel has taken an impairment charge of 2 billion pounds in the last 5 years due to its poorly performing UK business.
Source: Economic TimesTata Steel puts entire UK business up for sale.
Industry: Steel 2016-03-30
