Tata Steel UK ceases coke oven operations; stock rises 2% but pare gains soon

Shares of Tata Steel gained as much as 2 per cent in Tuesday's trade but pared gains soon after Tata Steel UK decided to cease operations of the Coke Ovens at the Port Talbot plant, in Wales and increased imports of coke to offset the impact of the coke oven closures.

As of 12:52 p.m., shares of Tata Steel traded 0.33 per cent higher, at Rs 150.1 apiece on the BSE. The market capitalisation of the company at around the same time stood at Rs 1,87,376.47 crore.

"As a further update on its operations in the UK, Tata Steel UK has decided to cease operations of the Coke Ovens at the Port Talbot plant, in Wales, following a deterioration of operational stability," the filing read.

It further added Tata Steel UK will increase imports of coke to offset the impact of the coke oven closures. 

Tata Steel had previously stated that many of its heavy-end assets in Port Talbot are at their end-of-life capability. 

The company is currently at an advanced stage of consultations with trade unions in the UK on its proposal for the planned restructuring involving the closure of the iron and steelmaking assets at Port Talbot, and subsequent transition to sustainable low-CO2 steelmaking involving a £1.25 billion investment in Electric Arc Furnace technology in Port Talbot and asset upgrades.

Moreover, global brokerage Macquire has raised its target price on Tata Steel to Rs 162 from Rs 146 apiece with an 'outperform' rating. 

Also read: metal stock story link 

Tata Steel share price: Past performance

In a year, shares of Tata Steel gave a multi bagger return of over 129 per cent against Nifty50's rise of over 29 per cent. 

Catch the latest stock market updates here. For all other news related to business, politics, tech and auto, visit Zeebiz.com.

DISCLAIMER: The views and investment tips expressed by investment experts on zeebiz.com are their own and not those of the website or its management. zeebiz.com advises users to check with certified experts before taking any investment decisions.