On September 2, Tata Steel Europe, subsidiary of Indian steelmaker Tata Steel, has announced the closure of its Orb Electrical Steels plant in Newport, which will cause up to 380 job losses.
The Newport plant is a part of Tata Steel’s Cogent Electrical Steels arm and produces electrical steel used in power transmission for vehicles. In May 2018, the company had announced the potential sale of the plant, along with four other business units, in order to focus on its strategic markets.
The company said the Newport plant has been loss-making for years and that it would cost about €50 million to convert the site to produce steels for new technology electric vehicle production. Tata Steel stated that it was unable to find a way forward to keep the business in Newport going.
Henrik Adam, CEO of Tata Steel Europe, stated, “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.”