The Klesch Group abandons discussions for the takeover of Tata Steel’s long products division

The Geneva-based Klesch Group has said it is no longer interested in buying Tata Steel’s European long steel division. This division has 6000 workers.

American billionaire Gary Klesch motivated the withdrawal by blaming the increase in energy prices and cheap imports from China. He declared, for the Financial Times, that he was frustrated by the failure of the British government in addressing these issues.

„The industrial sector is suffering. If it was important for them to ensure that these jobs are saved, they would have solved these problems”, said Klesch.

Long steel European division – products

Tata Steel‘s long products division produces steel conveyors and sections used in construction, heavy industry and excavation. This includes factories in Scunthorpe and Teesside – England, as well as in Dalzell and Clydebridge in Scotland.

Unions in the steel industry have said that the failure to reach an agreement will not have a direct effect on jobs. But he called for the government’s help to do more to help UK companies compete.

Roy Rickhuss, general secretary of the Community, said: „The UK continues to be disadvantaged by high energy costs, compounded by environmental charges not faced by competitors in Europe.”

The Department for Business said: “The steel industry is an important part of the UK economy. They are facing difficult economic conditions at the moment and we are in close collaboration with the sector.”

Tata Steel stated that it will continue to seek a sustainable future for its business. Because it has turned into an independent unit. It is believed that this will allow the company to pursue other strategic options.

Article source: http://www.bbc.com/news/business-33772944

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