Tata Steel announces closure of manufacturing unit in Welsh

London: Tata Steel has announced the closure of a manufacturing plant in southern Welsh city of Newport.
The steel giant said it has clinched the sale of a Canadian and Swedish plant as part of its worldwide Cogent Electrical Steels division. But despite exploring all options, the company has been unable to find a way forward for the Orb Electrical Steels plant.
“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,” said Henrik Adam, CEO of Tata Steel’s European operations.
“I recognise how difficult this news will be for all those affected, and we will work very hard to support them,” he said in a statement.
The company said its Orb Electrical Steels business in Newcastle 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.
Converting the site to create steels for future electric vehicle production would cost in excess of 50 million pounds in a highly competitive market where Tata Steel faces higher-volume competitors both in Europe and globally.