Tata Steel to close plant in Newport, South Wales risking hundreds of jobs

Tata Steel has announced that it proposes to close its electric steel plant in Newport, South Wales as it has failed to find a buyer for it.

The closure of the Orb Electrical Steels base will result in a loss of 380 jobs.

Tata Steels European operations head Henrik Adam said, "...today's proposal will be sad news for colleagues at Orb in South Wales. This is necessary, enabling us to focus our resources, including investment, on our core business and markets, helping us build a long-term sustainable future in Europe."

Henrik added: "Continuing to fund substantial losses at Orb Electrical Steels is not sustainable at a time when the European steel industry is facing considerable challenges. We saw no prospects of returning the Orb business to profitability in the coming years.

"I recognize how difficult this news will be for all those affected and we will work very hard to support them."

The Orb Electrical Steels business has been loss-making for several years as it struggled to compete in the fast-moving market to supply steels used in electricity transformers in which customer requirements have out-stripped the site's capability.

Tata Steel has signed a sales and purchase agreement for Cogent Power Inc (CPI), with Japanese steel giant JFE Shoji Trade Corporation. CPI manufactures cores for electrical distribution transformers and employs nearly 300 people.

Furthermore, Tata Steel has decided to retain Surahammars Bruks AB, which makes advanced steels for electric vehicles and employs around 100 people.