Tata Steel has announced a temporary mothballing of a hot strip mill in Newport, South Wales, with immediate effect. The closure will mean 115 members of staff will lose their jobs as a result of “continuing poor UK steel demand amid a deteriorating European economic outlook.”
During the financial crisis in 2009 the Llanwern hot strip mill was mothballed for nine months, between January and September, also as a result of poor market conditions. The Hub Director for the Strip Products said the firm regretted the staff lay-offs, but that the measures were wholly necessary.
Jon Ferriman said: “We remain committed to sustainable steelmaking in Wales. Our major capital expenditure project to rebuild Port Talbot’s Blast Furnace No 4 is now underway and we are working on a raft of investment initiatives to further improve our competitiveness for the future. At the same time we are placing a strong emphasis on cost-saving measures as we weather the current economic downturn.”