Tata Steel Europe has signed an agreement to sell its German aluminum roofing and cladding business Kalzip to German steel construction group Donges SteelTec in order to focus more on core businesses at its Dutch and UK sites, the steelmaker said Thursday.
“This sale will enable Tata Steel in Europe to focus investment and management resource on its core strip products business and strategic markets,” said Hans Fischer, Tata Steel European Operations CEO.
According to Mutares Group, the German parent company of Donges, the transaction is expected to be completed by the end of September, following regulatory approval.
Tata Steel said in May it would offload five business units. Apart from Kalzip, the sales will include UK electrical steel producer Cogent; UK steel coater Firsteel; Turkey-based coil-coating group Tata Steel Istanbul Metals, and UK stockholder Engineering Steels Service Centre.
“The signing of this agreement follows the successful sale of other non-core businesses in recent years, such as Long Products Europe and Speciality Steels,” said Fischer.
Tata Steel Europe signed an agreement with German industrial group Thyssenkrupp in late June to combine their steel divisions. The merger is expected to be concluded early next year following approval by European competition authorities.
Laura Varriale, PLATTS
