Tata Steel gets $130 million in Teesside arbitration settlement
22 Jun 2011
Tata Steel has received about $130 million (Rs585 crore) in an arbitration settlement between its UK subsidiary and a consortium of buyers that broke an offtake agreement with its TCP unit in England.
Tata Steel UK Limited (TSUK), the UK subsidiary, had, on 5 January 2011, received a partial final award in its favour in an ongoing arbitration with certain offtakers of the Teesside Cast Products business (TCP), the company said in a stock market filing.
The tribunal had found that the offtakers did not validly terminate their offtake agreements with Teesside and a commercial settlement to all disputes relating to the offtake agreements was reached.
On 21 June 2011, Tata Steel completed a full and final settlement of claims with the consortium of former offtakers and received an aggregate sum of approximately $130 million, Tata Steel said in its release.
The arbitration proceedings were held under the auspices of the ICC International Court of Arbitration.
Tata Steel Group, with an annual crude steel capacity of over 27 million tonnes per annum, reported a turnover of $26.64 billion in FY'11. One of the world's most geographically diversified steel producers with operations in 26 countries and a commercial presence in over 50 countries, Tata Steel has over 81,000 employees across five continents.