UPDATE: TATA Steel plant now for sale by tender
WH Auctioneers invite urgent tenders to purchase Richards Bay's ferrochrome smelting facility.
AFTER several unsuccessful attempts to sell the Tata Steel KZN (TSKZN) plant in Richards Bay, the group is inviting urgent tenders to purchase the ferrochrome smelting facility in Alton.
The seven-year-old company announced its voluntary liquidation in September following a three-month business rescue process in a last ditch attempt to save the sinking ship.
Johannesburg-based agency WH Auctioneers is conducting the tender process for the 54.5ha property, replete with laboratories, a stacking yard, warehouse, workshops, an administration building, raw material shed, security office, medical centre and a canteen store.
Two months ago Tata Steel KZN Managing Director Ashwani Kumar Lal explained the business had deteriorated in the past year from being uncompetitive to completely unsustainable owing to the spike in power tariffs, as well as the drop in global commodity prices for its product.
‘Tata Steel, prior to the liquidation, will be paying off approximately $35-million (US dollars) on account of the outstanding dues of the secured lenders of TSKZN. Liquidation proceeds will first be utilized towards costs, employees and other creditors,’ said Lal.
The Richards Bay facility produced 150 000 tons of high carbon ferrochrome, exported to stainless steel manufacturers in Asia, Europe and the USA.
Its last product was shipped to customers in June when stock ran out during the plant’s winter shutdown.
