Tata Steel to Shut Part of Loss-Making UK Business

SEATTLE (Scrap Monster): Tata Steel announced its decision to shut part of its non-core assets in the United Kingdom. The closure of the loss-making Orb Electrical Steels site in Newport City, South Wales is expected to affect around 400 jobs.

Henrik Adam, CEO of Tata Steel's European operations noted that the company doesn’t see any prospect of returning the Orb operations into profitability in the coming years. It is not sustainable to fund substantial losses at Orb Electrical Steels, especially at a time when European steel industry is faced with considerable challenges. The conversion of the site to create steel for automotive industry would cost huge investment of more than 50 million pounds, he added.

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The company assured all possible assistance to employees affected by the decision.