June 22 (Bloomberg) -- Tata Steel Ltd., which shut and sold part of its Teesside Cast Products unit after four of its largest customers halted orders, said it received $130 million as settlement from the violators of the 10-year contract.
An arbitration tribunal ruled the buyers unlawfully terminated the agreements, Mumbai-based Tata Steel said today in a statement to the Bombay Stock Exchange.
Tata Steel Europe lost about 150 million pounds ($242 million) running Teesside in northeast England after the buyers, accounting for about 80 percent of its business, didn’t honor the 2009 contract. Italy’s Marcegaglia SpA, South Korea’s Dongkuk Steel Mill Co., Luxembourg-based Ternium SA and Swiss-Italian steelmaker Duferco Participations Holding Ltd. walked away from taking deliveries of slab steel, which they process into other steel products.
Tata Steel shares were little changed at 558.10 rupees at the 3:30 p.m. close in Mumbai. The shares have fallen 18 percent this year, compared with a 14 percent drop in the Sensitive Index of the Bombay Stock Exchange.
The company mothballed some of Teesside’s operations in February last year. A year later, Thailand’s largest steel producer Sahaviriya Steel Industries Public Co. agreed to buy the unit for $469 million. The deal includes the sale of coke ovens, power generation facilities and the Redcar Blast Furnace.
To contact the reporter on this story: Abhishek Shanker in Mumbai at firstname.lastname@example.org
To contact the editor responsible for this story: Andrew Hobbs at email@example.com