Tata Steel gets $130mn in plant arbitration settlement

New Delhi : Tata Steel has received about $130 million (Rs 585 crore) in an arbitration settlement between its UK subsidiary and a consortium of buyers that broke an offtake agreement with its Teeside Cast product (TCP) plant in England. Following the termination of the offtake agreement by a consortium of international buyers, Tata Steel last year mothballed TCP mill and sold the assets to Thailand's largest steel producer Sahaviriya Steel Industries (SSI) for $469 million early this year.

"A commercial settlement to all disputes relating to the offtake agreements was reached and on June 21, 2011 Tata Steel completed a full and final settlement of claims with the consortium of former offtakers. Tata Steel has received an aggregate sum of approximately $130 million," Tata Steel said. Tata Steel UK (TSUK), had on January 5, 2011 received a partial final award in its favour in the ongoing arbitration between TSUK and certain offtakers of the Teesside Cast Products business.