Gazette Live reported that TATA Steel has refused to comment on reports that potential buyer of Long Products Europe division has seen the collapse of a major oil refinery deal.

It has refused to comment on the reports that Klesch Group, which is earmarked to buy key sites on Teesside, has suffered the collapse of its deal to buy the Welsh Murco refinery threatening hundreds of job losses.

TATA Steel said that the collapse of a major oil refinery deal by the potential buyer of its Long Products Europe division is ‘unconnected’ to its own sell off plans. The steel producer has started ‘detailed due diligence’ with Swiss based Klesch Group on the sale plans.

US firm Murphy Oil Corporation said that its wholly owned subsidiary, Murco Petroleum Limited, was unable to complete the sale of the Milford Haven refinery and terminal assets to Klesch Refining Limited by a deadline of October 31.

TATA Steel announced last month it had signed a Memorandum of Understanding with the Swiss-based Klesch Group for the sell off, including the Lackenby Beam Mill and Skinningrove Special profiles operations affecting 700 workers on Teesside. A TATA Steel spokesperson said that “We have started detailed due diligence with Klesch Group into the potential sale of our Long Products Europe business and its connected distribution facilities. It would be wrong for TATA Steel to comment on an unconnected deal.”