India-based pig iron producer and supplier Tata Metaliks, a part of Tata Steel, has announced that it has entered into an agreement with India's Fomento Resources for divestment of the 300,000 mt capacity Redi pig iron making facility in Maharashtra, considering the uncertainty of the iron ore situation in India.
According to the company statement, Tata Metalliks will sell the Redi plant for a consideration of INR 1.8 billion ($36.8 million). The proceeds from the divestment will be used for reshaping the balance sheet and future strategic investment.
Tata Metaliks' shares rose nearly eight percent after the announcement of sale of the Redi plant.