Tata Metal has introduced its most popular bidder for the £100m sale of its Speciality Steels division primarily based in South Yorkshire.
The agency stated it had signed a Letter of Intent to enter into unique negotiations with Liberty Home Group.
Greater than 1,700 individuals are employed within the division, which has factories in Rotherham and Stocksbridge.
Metal union Neighborhood stated it welcomed information of negotiations following “months of pointless stress and concern”.
The union’s basic secretary Roy Rickhuss stated: “It is a constructive step for the UK metal business; nonetheless there stay enormous challenges which authorities should tackle.”
The union stated it might be looking for pressing talks with Liberty Home Group and can be asking what their plans have been for funding, defending jobs and offering first rate pensions for members in retirement.
Tata Metal’s UK boss Bimlendra Jha stated the announcement was “an vital step ahead”.
“We now sit up for working with Liberty on the due diligence and different work streams in order that the sale may be efficiently concluded,” he stated.
The Speciality Steels unit makes high-end elements for the automotive, aerospace and oil industries.
In April, Tata sold its long-products division, primarily based in Scunthorpe, to Greybull Capital, a UK-based funding agency.