Tata Steel in Europe today announced it has signed a sales and purchase agreement for the sale of its Kalzip business, allowing the company to continue to strengthen its focus on strategic steel products and markets.
Kalzip, an aluminium roofing and cladding business based primarily in Koblenz, Germany, is being purchased by Donges SteelTec GmbH in a move which would see the entire workforce transfer to the new owner. Tata Steel announced in May, this year, it was seeking a buyer for Kalzip along with four other businesses.
Hans Fischer, CEO of Tata Steel’s European operations, said: “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. Under new ownership these former Tata Steel businesses have found the focus to secure a more sustainable future. In turn, these divestments have allowed us to focus resources on making significant improvements to the core strip business, as part of our ambition to develop the most sustainable steel business in Europe focused on our IJmuiden and Port Talbot value chains.”
And he added: “This sale will enable Tata Steel in Europe to focus investment and management resource on its core strip products business and strategic markets.”
The sale of Kalzip is subject to regulatory approval. On completion of the sale, Tata Steel’s European operations would continue to employ about 21,000 people manufacturing advanced products for the automotive, construction, engineering and packaging sectors.