Tata`s Corus unit sells stake in Europe tar plant JV

Corus sells 50% stake in Cindu Chem. Corus, the British-Dutch subsidiary of Tata Steel, has sold its 50 per cent stake in Cindu Chemicals, a Dutch chemicals company. The decision to sell the tar distillation plant to Koppers International in Uithoom, had been taken because “tar processing is not a core activity for Corus,” the company said Tuesday. It did not reveal the financial details of the transaction but said the transaction secured the future for the business while ensuring no disruption of supplies to a long-term business partner. The plant, which distills 140,000 tonnes per annum has been in operation since 1922, and has operated as a joint venture since 1979.Though conditions are improving for Tata Steel Europe, business has not returned to the levels seen before the global financial crisis. Last month, Tata Steel Europe reported that turnover in its third quarter was down 36 per cent compared with the same period a year before. Weak steel prices and demand, coinciding with rising raw material prices has forced the company to make some tough decisions.