Tata Steel on Friday announced it intended to cease its loss-making construction products business, an operation focused on roll-formed products and assemblies, based at the Llanwern site in Newport, South Wales.

Paul Steele, managing director (distribution), UK & Ireland, said, “Our markets are highly competitive. On two occasions recently, the company had 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 solar array structures. Despite these efforts, most reluctantly, we have come to the conclusion that there are no prospects of generating sufficient viable new businesses to sustain this operation."

The company said this business, which saw consistent losses since 2008, employed around 70 people.

A full, formal consultation process would take place over a statutory minimum period of 30 days with trade unions, employee representatives, and all employees on an individual basis.

The company would explore all opportunities to re-deploy employees wherever possible and to assist those leaving the business through a range of support services.

During the consultation process, options would be evaluated to minimise the impact of the closure and to retain some vital parts of the construction products order book. This would involve negotiations with some customers, with whom the company has signed manufacturing agreements.