Tata Steel, the world?s seventh largest steel manufacturer, on Wednesday said that one of its subsidiaries, Tata Steel UK Ltd (TSUK), received about $130 million (around R582 crore) as part of an arbitration settlement between its subsidiary and certain offtakers of the Teesside Cast Products (TCP) business.
?The amount was received on January 5, 2011 as a partial final award in its favour in an ongoing arbitration between TSUK and offtakers of TCP,? Tata Steel said in a statement to the BSE. Shares of Tata Steel on Wednesday slipped marginally by 0.21% to close at R558 on the BSE.
Earlier this year, the steel major said it had signed a $469-million agreement to sell some assets of TCP to Thailand’s SSI. The Teesside plant, which is based in the northeast of England, was partially shut in February last year after four international bidders terminated a 10-year contract for slab off-take from the unit. Two members of the consortium, Marcegaglia of Italy and Dongkuk Steel of South Korea, had decided not to pick up an agreed 80% stake in the unit because of the persistent weakness in global steel markets. The two others in the consortium were Duferco of Brazil and Alvory, a subsidiary of Latin American steelmaker Ternium. They were to buy just under 78% of the plant?s production for 10 years, underpinning its future.
Tata Steel said, ?The arbitral tribunal found that the offtakers did not validly terminate their offtake agreements.?