Tata Steel in the UK has announced further re-structuring of its business. In its latest move the company says that it will be “… focussing its UK strip products business on higher value markets”. This will involve some cost reduction, the company has told employees at its strip products business in South Wales. Contractor employees will be affected.

In a statement monitored by Kallanish, Tata that says that the company will concentrate UK production of hot rolled coil at its hot strip mill in Port Talbot. This mill has benefited from quality and capacity upgrades and uses recovered energy sources from the steelworks, the company says.

Some coil processing facilities including the sibling hot strip mill at Llanwern, Newport, will come out of production but will be retained so they can be restarted in more favourable market conditions. The higher-cost Llanwern mill has ramped up and down on two occasions since 2009, Tata adds.

“Tata Steel employees at the Llanwern mill will be redeployed within the business and the company will discuss possible impacts with contracting companies which provide services”, it says. The company makes no mention of numbers involved in any job losses in its statement. Trade unions however have been more forthcoming. The GMB union says that 250 contractor jobs are to go.

GMB also gives slightly more detail on the restructuring. It says that the Llanwern hot rolling mill, cold rolling mill and pickling line will be closed and mothballed. The Llanwern hot coil finishing line and the so-called Zodiac Line, specialising in automotive sheet production, will be retained.

Tata Steel did not respond to requests for further information by Kallanish before publishing deadline.