Nov. 16, 2020 - Swedish steelmaker SSAB is in talks with Tata Steel about potentially buying the Indian group's Dutch steel mill in IJmuiden and related assets, it said on last Friday.
“SSAB has participated in several different discussions concerning consolidations in the European steel industry,” the company said. “The discussions with Tata are ongoing but no decisions have been made.”
The news comes as European steelmakers look for ways to restructure in the face of over-capacity, cheap Chinese imports and the fallout from the COVID-19 crisis, which has made it virtually impossible for them to turn a profit.
Tata Steel Chief Financial Officer Koushik Chatterjee said on a conference call with analysts on Friday that the company was engaged in consultations with stakeholders.
“Subject to regulatory approvals, we hope to close the transaction in the next six to nine months,” Chatterjee said.
Dutch Prime Minister Mark Rutte welcomed the news, saying a takeover by SSAB could improve prospects for the massive IJmuiden plant and help make production there more sustainable.