London, April 11

Indian giant Tata Steel announced today the sale of a major British steel division employing 4,400 people, as it formally placed the rest of its steel assets in the country up for sale.

The government has been racing to find a buyer for Tata’s assets — and save 15,000 jobs — after the company’s shock announcement last month it was selling its British assets due to a global oversupply of steel, cheap imports into Europe, high costs and currency volatility.

Tata Steel said it had agreed to sell its Long Products Europe (LPE) division, whose chief asset is the Scunthorpe works in eastern England, to Greybull Capital, a British-based family investment office. Long products are items such as steel pipes that are sold by length.

“This transaction will offer a future for the LPE business and its 4,400 employees in the UK,” said Hans Fischer, chief executive of Tata Steel’s European operations.

Tata Steel is still looking for a buyer for the rest of its British assets including the Port Talbot steelworks on the south Wales coast, Britain’s biggest steel plant, which employs 4,000 workers.

The LPE deal is expected to complete within eight weeks, subject to conditions being met.

LPE, which will be renamed British Steel, was sold for a nominal £1 ($1.40, 1.25 euros). Greybull said it is arranging a £400 million investment and financing package as part of the deal.

The money is provided mainly by a combination of banks and shareholders. The LPE sale also includes two mills, a port terminal, an engineering workshop and a design consultancy, all in Britain, as well as a mill in northeast France which employs 400 people.

After a fortnight of pressure from the opposition, trade unions and the press over the government’s handling of the crisis, Business Minister Sajid Javid was to address lawmakers later today on efforts to find a buyer for Tata’s assets.

He flew to India last week to meet company executives and has said the government will make every effort to secure a serious buyer for the Port Talbot plant and other assets.