Tata Steel Europe will sell Cogent Power to JFE Shoji Trade Corp of Japan
New Delhi, September 2 () Tata Steel Europe said Monday that it signed an agreement with Japanese steel giant JFE Shoji Trade Corporation for selling its subsidiary Cogent Power Inc (CPI).
However, Tata Steel did not provide any financial details of the agreement.
CPI is part of Cogent Electrical Steels, one of the five non-core business units, whose sale Tata Steel Europe had announced in May 2018, according to a company statement.
Other non-core businesses under consideration of potential sales were Kalzip, based in Gearmany; Firsteel based in the United Kingdom; Tata Steel Istanbul Metals, based in Turkey; Engineering Steel Service Center based in the United Kingdom.
Tata Steel has signed a purchase and sale (SPA) agreement for Cogent Power Inc (CPI), with Japanese steel giant JFE Shoji Trade Corporation, the company said.
CPI manufactures cores for power distribution transformers and employs almost 300 people.
Cogent Electrical Steels comprises Orb Electrical Steels, Newport, South Wales; Cogent Power Inc, Burlington, Canada; and Surahammars Bruks AB, Surahammar, Sweden.
While Tata Steel managed to sign a purchase and sale agreement for Cogent Power Inc, it decided to retain the advanced steel manufacturer Surahammars Bruks AB, which employs 100 people, and proposes to close Orb Electrical Steels, according to the statement.
The closure of Orb Electrical Steels will lead to a potential loss of up to 380 jobs, he added.
Its Orb Electrical Steels business has had losses for several years and the conversion of the site to create steels for the future production of electric vehicles would cost more than 50 million pounds in a highly competitive market, Tata Steel said. ABI MKJ