American business magnate to snap up Tata Steel site

TATA STEEL’S factory in Scunthorpe is on the verge of being sold to American mogul Gary Klesch.

This follows Tata’s write down last week of the value of its steel “long products” division by around £500 million.

The firm blamed the writedown on the “supply imbalance facing the global steel industry” and according the The Sunday Times, the division has struggled amid stagnant European construction markets.

Mr Klesch is reportedly in “eleventh hour” talks with Indian conglomerate Tata to tie up the deal that would see him acquire the steel works site.

When it is finalised, it will be part of a major acquisition by the firmof a Tata division which employs 6,500 people and has UK sites in Scunthorpe, Teesside, Dalzell and Clydebridge in Scotland. It also has sites in France and Germany

Mr Klesch founded Geneva-based Klesch Group in 1990 which is involved in heavy industries such as oil, gas, metals and mining.

It employs around 4,500 people in 16 different countries and has a turnover of £3.17bn.