Home » Tata Steel merger agreed with ThyssenKrupp
News Top News

Tata Steel merger agreed with ThyssenKrupp

A MERGER between Tata Steel and ThyssenKrupp has been agreed.

The merger will create the second-biggest steelmaker in Europe, behind only Arcelor Mittal. The deal was agreed yesterday (Jun 29) and both parties expects to save between £350m and £440m per year.

Tata Steel’s UK plants, including Port Talbot, will be merged into the pan-European venture, worth £13bn in sales annually.

Tata Steel’s Port Talbot site currently employs over 4,000 people. The merged parties will now employ over 48,000 people.

Natarajan Chandrasekaran, chairman of Tata Steel, said: “This is a significant milestone for Tata Steel and we remain fully committed to the long-term interest of the joint venture company.

“We are confident that this company will create value for all stakeholders.”

online casinos UK

The merger talks had previously suffered delays following concerns about Tata Steel’s pension scheme, and earlier this year the pensions regulator approved the plan for the creation of a new pension fund, following a £550m top up by the company.

The news follows a £30m investment at the Port Talbot site last year.

The investment will bring a 500-tonne steelmaking vessel to the site as well as other ‘upgrades’ to ensure it runs to its fullest in the future.

The new equipment, a Tata spokesperson said, will enable the site to produce advanced forms of steel which are used in the building industry and hybrid/electric cars.

Dave Murray, the Project Manager at the site, told the BBC: “We have two steelmaking vessels and they run 24/7 at temperatures of up to 1,700C, apart from short planned maintenance periods. Despite this they last for around 20 years each and replacing them is an important part of ensuring reliable operations.”

Bimlendra Jha, the UK Chief Executive of Tata, added: “These investments will help us to increase our reliability and demonstrate our commitment to the longer-term future of steelmaking in the UK.”

Author

Tags