Tata Steel which shut and sold part of its Teesside Cast Products unit after four of its largest customers halted orders, said it received $130M 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 in a statement to the Bombay Stock Exchange.
Tata Steel Europe lost about £150M ($242M) from Teesside, UK after the buyers, accounting for about 80% of its business, did not honour 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.
The company mothballed some of Teesside’s operations in February last year. A year later, Thailand largest steel producer Sahaviriya Steel Industries Public Co agreed to buy the unit for $469M.
The deal includes the sale of coke ovens, power generation facilities and the Redcar Blast Furnace.