Tata Steel axes 115 jobs, mothballs Welsh mill
Indian steelmaker Tata Steel axed 115 jobs and temporarily shut its mill at a steel factory in Wales on Friday, blaming dwindling demand and the poor economic outlook.
Tata said in a statement that it would mothball the hot strip mill at the group's Llanwern site in Newport, South Wales, with immediate effect.
"The mothballing is a result of continuing poor UK steel demand amid a deteriorating European economic outlook," Tata said in a statement.
In a hot strip mill, semi-finished cast steel is converted into finished products in a process known as hot rolling.
"The facility is expected to remain mothballed until the UK economy and steel demand justify a restart," Tata said in its statement, adding that the move would involve the loss of 115 jobs.
"In the meantime the market will be supplied with material from Tata Steel's other hot strip mill in South Wales at Port Talbot, whose costs are lower."
© 2011 AFP