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Sale of Teesside plant helps Tata Steel back to profit

Tata Steel has reported a return to annual profit, thanks in part to higher steel prices and the sale of a UK plant.

Profits were boosted by the sale of its Teesside plant for $561m to Thailand’s SSI in March.

Last week, Tata proposed cutting 1,500 jobs in the North of England.

This includes 1,200 jobs in Scunthorpe and 300 in Teesside at its loss-making Long Products division. However, the firm said it would invest £400m in the division over the next five years to help turn it around.

“It was a good year as steel consumption in India rose, aided by strength in industrial activity,” Tata Steel’s managing director HM Nerurkar told the national press.

Karl-Ulrich Kohler, chief executive of the company’s European operations, told the national press: “Higher selling prices and deliveries gave us a strong end to [the year], with one-off benefits from the completion of the Teesside sale.”

Tata is one of the biggest steel makers in the world, with operations in 26 countries.

This was posted in Bdaily's Members' News section by Ruth Mitchell .