Steel giant Tata to shut construction products arm

Grant Prior 13 years ago
Share

Tata Steel is closing its loss-making Construction Products business at Llanwern in Newport with the loss of up to 70 jobs.

The plant has been losing money since 2008 and specialises in the manufacture of floor decking and highways parapets.

Tata chiefs blamed the move on the slow recovery in the construction market and a dive in public spending.

Paul Steele, Tata Steel’s Managing Director for Distribution UK & Ireland, said: “It is with great regret that, following a detailed review of the business, we have proposed to cease operations at Construction Products.

“Clearly this is a very difficult time for the people who work for the business and I would like to pay tribute to everyone who has tried so hard to enable this business, which has operated at a consistent loss since 2008, to overcome the continuing economic downturn.

“The business focuses on floor decking systems, highways barrier systems for roads and parapets, and also lightweight frames for a variety of applications.

“CP’s product range is sold to the construction industry, which has not recovered well from the financial crisis, and to market areas dependent on public procurement activity, which has also been severely affected by the long-running economic downturn.

“Our markets are highly competitive. On two occasions recently the Company has 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 also solar array structures.

“Despite these efforts, most reluctantly, we have come to the conclusion that there are no prospects of generating sufficient viable new business to sustain this operation.”

Tata will try to redeploy workers in other divisions and the closure does not concern any of the other manufacturing operations based at Llanwern.

Latest news

£2bn Edinburgh ‘West Town’ scheme approved

7,000 homes to be built at 205-acre site
15 hours ago

Briggs & Forrester sells maintenance arm

100 engineers to move over to new owner
16 hours ago

Rayner approves Lancashire super prison

Communities secretary overrules planning inspector for 1,700 inmate prison.
22 hours ago

Wates boss returns after collapse of his own contractor

Paul Nicholls was head of the failed Real construction group
2 days ago

Trio secure Birmingham deal to retrofit 3,000 homes a year

Specialist contractors to install insulation, efficient heating and solar panels
22 hours ago

Costain confirms £400m HS2 tunnels win

Work to start early next year on tunnel and lineside mechanical and electrical systems
22 hours ago

First nuclear reactor installed at Hinkley: Video

Watch precision operation at Somerset site
22 hours ago

Winner named for £14m Harbourside revamp

Local Irvine contractor to transform beach front
22 hours ago

New Fair Payment Code goes live today

Latest bid to get subcontractors and suppliers paid within 30 days
2 days ago

Lincolnshire concrete supplier files administration notice

Ever Readymix Concrete & Screed operates three depots and a fleet of 20 trucks
2 days ago

Graham lands first deal on Liverpool’s largest brownfield site

Contractor bags infrastructure package on 10.5 hectare site
3 days ago

Bouygues UK boss to step down

Fabienne Viala to leave after eight years at the helm
3 days ago

Galliford Try scoops £87m brace of London jobs

Firm will redevelop a prominent corner building on Sloane Street in Chelsea
2 days ago

New HS2 boss Mark Wild starts amid prep for final TBM drives

Former Crossrail CEO starts with a sharp focus on controlling costs
3 days ago

Ten consultants land Thames Water major upgrade places

Firms will share £400m of fee work over next five years
3 days ago

Rayner ultimatum to fix all unsafe tall buildings by 2029

Recladding work must start on all 18m+ resi buildings by 2027
3 days ago

ISG administrator finds just £35m to pay down £1.1bn debt

Failed firm was set to report £148m blackhole from legacy jobs
3 days ago

Redesign needed on Colas “bridge to nowhere”

Technical challenges continue as £38m scheme faces further delays
3 days ago

Skanska UK shakes-up boardroom team

Four new board appointments as two directors step down
3 days ago

Ultra rich clamour for Mace super prime resi scheme

Topping out at £2bn 1 Mayfair scheme where homes start at £35m
3 days ago

Watkin Jones wins £48m St Helen’s affordable homes deal

Firm to build nearly 300 homes for housing association
3 days ago

Barratt sets start date for High Barnet station scheme

Latest scheme to be delivered by the £1.9bn West London Partnership
3 days ago

Investors lose £26m after M&E contractor goes under

78 private investors hit by Gallant Building Services collapse
6 days ago

First contractor call for £80bn Government mega-framework

Seven-year deal will cover construction work across all departments
7 days ago

Transport Secretary quits Cabinet

Louise Haigh resigns over stolen mobile phone revelations
6 days ago

NHS modular specialist looks to strike deal with creditors

Catfoss Group Manufacturing applies for Company Voluntary Arrangement
6 days ago

Kier bags £23m Cheadle Eco Business park job

Contractor beats rival Galliford Try to deliver Stockport council's green business park
6 days ago

Willmott Dixon wins £24m Leeds council housing scheme

Firm will build 82 council houses on site of Hough Top school
6 days ago

Welding crisis road bridges revealed

Bridge projects in Midlands, Gateshead and Cornwall impacted
7 days ago

£1bn Bishopsgate Goodsyard phase one go-ahead

London Mayor approves 550,000 sq ft office scheme above Shoreditch station
7 days ago

Contractor services