Tata Steel announces closure of UK factory

UK: Tata Steel announced that it had clinched the sale of a Canadian and Swedish plant as part of its worldwide Cogent Electrical Steels division but, despite exploring all options, the company has been unable to find a way forward for the Orb Electrical Steels plant.

The company said it had signed a sales and purchase agreement for Cogent Power Inc (CPI), with Japanese steel giant JFE Shoji Trade Corporation.

CPI manufactures cores for electrical distribution transformers and employs nearly 300 people.

The company said its Orb Electrical Steels business in Newcastle has been loss-making for several years as it struggled to compete in the fast-moving market to supply steels used in electricity transformers in which customer requirements have out-stripped the site’s capability.

Source: Money Control