Liberty House Group led by Indian-origin businessman Sanjeev Gupta on Wednesday reopened steelworks that it had acquired in Scotland from Tata Steel in the earlier part of this year.
Scottish First Minister Nicola Sturgeon marked the restart of the Dalzell plant officially at Motherwell near Glasgow, which was rescued Liberty House Group in the month of April following its closure in December 2015 among a steel industry crisis that shook the world.
Gupta led Industrial and commodity group bid for Tata Steel UK's speciality steel and pipe businesses is worth nearly 100 million pounds (US$ 130 million), an industry source told Reuters on Wednesday.
The largest steelmaker of Britain paused the sale of its major UK assets in the month of July to explore a joint venture with a German firm Thyssenkrupp, but proceeded with separate talks to sell its speciality and pipe businesses.
These businesses employ around 2,000 people directly, but around 8,000 jobs would be at risk in sectors that are related to steelmaking if sale talks fail. Liberty was a bidder for UK Tata Steel’s major assets.
Dalzell is the major steelworks which is the last one in Scotland as well as over several generations, has provided Britain with the tough steel plate used in industries such as shipbuilding, construction, mining, oil production and heavy vehicle manufacture. The reopened plant will be targeting Britain's 700,000 tonne-a-year market for plate steel which is estimated to be growing at the rate of 3 per cent a year.
An industry source familiar with the development told Reuters after Tata Steel paused, the sale that Liberty would proceed with plans to bid for the company's speciality steel and pipe businesses, based in Rotherham, Stocksbridge and Hartlepool. Tata Steel and Liberty declined to comment.
On the market front Tata Steel share price closed at Rs 368.80, down by 3.46 per cent amid massive confusion caused by the news of India’s surgical operation at LoC (Line of Control). The share price went as high as Rs 383.85 and touched a low of Rs 365.00, intraday. A total of 1,33,61,076 shares of the Company have been traded on NSE amounting to a total amount of Rs 49,783.37 lacs. The Upper Price Band is 418.35 and the Lower Price Band is 342.35. The 52 week high of the share is Rs 408.60 made very recently on 8th September 2016 and the 52 week low of Rs 199.70 made on 29th September 2016.
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