Tata Steel intends to cease operations at its loss-making Construction Products business, an operation focused on roll-formed products and assemblies, based at the Llanwern site in Newport. The business currently employs some 70 people.
Paul Steele, Tata Steel’s Managing Director for Distribution UK & Ireland, said: “It is with great regret that, following a detailed review of the TSCP business, we have proposed to cease operations at Construction Products. Clearly this is a very difficult time for the people who work for the business and I would like to pay tribute to everyone who has tried so hard to enable this business, which has operated at a consistent loss since 2008, to overcome the continuing economic downturn.
“The business focuses on floor decking systems, highways barrier systems for roads and parapets, and also lightweight frames for a variety of applications. CP’s product range is sold to the construction industry, which has not recovered well from the financial crisis, and to market areas dependent on public procurement activity, which has also been severely affected by the long-running economic downturn.
“Our markets are highly competitive. On two occasions recently the Company has attempted to address the business’s challenges by restructuring it to focus on new and developing markets. These have included safety platforms for protecting people handling freight and also solar array structures. Despite these efforts, most reluctantly, we have come to the conclusion that there are no prospects of generating sufficient viable new business to sustain this operation.”
A full, formal consultation process will take place over a statutory minimum period of 30 days with the Trade Unions and employee representatives, and with all employees on an individual basis. The Company will explore all opportunities to re-deploy employees where practical and to assist those people leaving the business through a range of support services.
During the consultation process, options will be evaluated to minimise the impact of the closure and to retain some vital parts of the Construction Products order book. This will involve negotiation with certain customers where manufacturing agreements exist.
This announcement does not concern any of the other manufacturing operations based at Llanwern.
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About Tata Steel in Europe
The European operations of Tata Steel (formerly known as Corus) comprise Europe's second largest steel producer. With main steelmaking operations in the UK and the Netherlands, they supply steel and related services to the construction, automotive, packaging, material handling and other demanding markets worldwide.
Tata Steel is one of the world’s top ten steel producers. The combined group has an aggregate crude steel capacity of more than 28 million tonnes and approximately 80,000 employees across four continents.