Tata Steel to sell New Zealand unit TSIAL to Steel and Tube for Rs141.7 crore
08 April 2014
Tata Steel is to sell its New Zealand unit Tata Steel International (Australasia) Ltd (TSIAL) to local steel company Steel and Tube ltd for $23.67 million (Rs141.7 crore).
TSIAL, a division of Mumbai-based Tata Steel, supplies stainless steel, engineering steels and composite floor decks to the New Zealand and Pacific Island markets.
Its main clients are from the food and beverages, pulp and paper, mining, chemicals, oil and gas, construction, transport and infrastructure, manufacturing, and marine and general engineering sectors.
Dave Taylor, CEO of Steel & Tube said, ''In a year when both companies celebrate their 60th year in business, the acquisition represents an important milestone for both of us. Together we are further strengthening our position as New Zealand's leading steel distribution company, providing outstanding steel solutions to construction, manufacturing and rural businesses throughout the country.
''TSIAL is an excellent strategic fit for Steel & Tube. Acquiring its established stainless and engineering steel distribution business, alongside its ComFlor manufacturing capability, will ensure continued growth under the long-established and well respected Steel & Tube brand,'' he added.
Steel & Tube is New Zealand's leading supplier of steel products and services. It has a nationwide service and distribution network in 40 locations and is listed among the top 50 companies on the New Zealand Stock Exchange by market capitalisation.
It caters to numerous sectors across the New Zealand economy including commercial and residential construction, manufacturing, rural and heavy and light engineering. Its product range includes the Hurricane and Atlas brands.