Tata steel and the tough choices

LONDON (Scrap Monster): The assets owned by the company, Tata Steel, in Europe includes, some steel units, which are located in Germany as well as in France, Scunthrope steel works, a design consultancy which is located in the United Kingdom, an engineering workshop, which is also located in the United Kingdom. The most important among these assets in the Scunthrope Steel Works, which covers almost 26 percent of the total assets of Tata steel in Europe. If this sale works out between Tata Steel, and the industrial company, Klesch Group, then Tata Steel would be retrieved from a bleeding industry with cash in hands, good enough to make a delivery in the balance sheet of the company. But there is always a question which is pending to be answered, is the company, Klesch Group, which is spread around 17 countries, willing to pay enough to get along a sinking ship?

With the hope of thick disappointment looming in the air of Europe, it might have an adverse effect on the sale of Tata Steel’s Europe based assets. The present situation of the European economy can be a punch in the gut for Tata Steel, as a lot of money has been spent by the company in the European assets as an attempt to save the sinking ship. Late in the  year  2007, when Tata steel acquired the steel plant6 from Corus, an Anglo-Dutch steel manufacturer in a deal worth 13 billion dollars, the deal was marked to be the  biggest ever foreign achievement made by an Indian company. Even after investing an amount of 1.2 billion dollars in the assets, nothing good came out it other than 7 years long hope.