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Tata Steel to mothball Llanwern site, cutting 250 jobs Tata Steel to mothball Llanwern site, cutting 250 jobs
(35 minutes later)
Hundreds of jobs are to be cut by Tata Steel as the company mothballs part of a plant in south Wales.Hundreds of jobs are to be cut by Tata Steel as the company mothballs part of a plant in south Wales.
The Community union said 250 jobs were to go, mainly at Llanwern, Newport, which employs 1,500 workers.The Community union said 250 jobs were to go, mainly at Llanwern, Newport, which employs 1,500 workers.
Tata said it needed to "reduce costs and focus on manufacturing higher-value products".Tata said it needed to "reduce costs and focus on manufacturing higher-value products".
The Welsh government called it "extremely disappointing" and said it would continue to look at ways to assist Tata's operations in Wales.The Welsh government called it "extremely disappointing" and said it would continue to look at ways to assist Tata's operations in Wales.
A spokesman added: "We have repeatedly lobbied the UK Government for urgent action to address issues such as high energy costs that are disadvantaging the steel industry across the UK against our overseas competitors."A spokesman added: "We have repeatedly lobbied the UK Government for urgent action to address issues such as high energy costs that are disadvantaging the steel industry across the UK against our overseas competitors."
Tata would not confirm the exact numbers of job losses but said they were mainly agency and contract workers.Tata would not confirm the exact numbers of job losses but said they were mainly agency and contract workers.
GMB union called it "more bad news for the steel industry" while Unite said job losses were "very disappointing".GMB union called it "more bad news for the steel industry" while Unite said job losses were "very disappointing".
This is the third time in six years that parts of the Llanwern steel processing plant have been mothballed because of market conditions.This is the third time in six years that parts of the Llanwern steel processing plant have been mothballed because of market conditions.
On the previous occasions, work was stopped for between nine and 10 months.On the previous occasions, work was stopped for between nine and 10 months.
The Community union, which has the most members at Llanwern, acknowledged Tata was under "huge pressure to reduce costs" but said laying off employees was "extremely regretful".The Community union, which has the most members at Llanwern, acknowledged Tata was under "huge pressure to reduce costs" but said laying off employees was "extremely regretful".
It is believed the job losses will involve agency workers.It is believed the job losses will involve agency workers.
ConcernsConcerns
It comes a year after the company announced 400 jobs were to go at its steelmaking plant in Port Talbot, Neath Port Talbot.It comes a year after the company announced 400 jobs were to go at its steelmaking plant in Port Talbot, Neath Port Talbot.
According to GMB, Llanwern's hot mill and cold mill will be mothballed along with one pickle line, which removes impurities from the metal.According to GMB, Llanwern's hot mill and cold mill will be mothballed along with one pickle line, which removes impurities from the metal.
GMB national officer Dave Hulse said the union would seek a meeting with Prime Minister David Cameron to discuss its concerns.GMB national officer Dave Hulse said the union would seek a meeting with Prime Minister David Cameron to discuss its concerns.
"We will see local communities destroyed with mass unemployment while the balance of payment deficit will increase further if we don't act now and get government support and action," he said."We will see local communities destroyed with mass unemployment while the balance of payment deficit will increase further if we don't act now and get government support and action," he said.
Newport East assembly member John Griffiths said he hoped the announcement was a temporary measure.Newport East assembly member John Griffiths said he hoped the announcement was a temporary measure.
"We want investment from Tata and a long-term view on expansion and growth here," he said."We want investment from Tata and a long-term view on expansion and growth here," he said.
"I'm hoping it is indeed mothballed rather than removed all together.""I'm hoping it is indeed mothballed rather than removed all together."
Tata has confirmed some of its hot strip mills will "come out of production" but added that they would be retained so they can be restarted in more favourable market conditions".Tata has confirmed some of its hot strip mills will "come out of production" but added that they would be retained so they can be restarted in more favourable market conditions".
The company also said employees at Llanwern would be redeployed within the business.The company also said employees at Llanwern would be redeployed within the business.
Analysis by Brian Meechan, BBC Wales business correspondent
Steelmaking is a tough business. It faces two main issues. Firstly, domestically there is the cost of producing steel in the UK which is driven in no small part by energy costs, which are higher than other parts of Europe.
We also need to look at the price of steel from around the world. We've seen with the Chinese economy slowing down that more steel is available from China as it's not needed as much there. That steel is making its way here and being bought because it is cheaper although is not the same quality. This is having an impact not just on steel manufacturers in the UK but across Europe.
Tata has made a huge amount of investment including a new blast furnace in Port Talbot which makes it cheaper to produce steel. A lot of the staff - as opposed to the fixed term workers - from Llanwern have been moving there. Processing work will remain at Llanwern. The plant has been mothballed twice before in the last five years and re-emerged.
Tata currently employs 6,950 workers at five plants in Wales.Tata currently employs 6,950 workers at five plants in Wales.
WHAT HAPPENS AT LLANWERN?WHAT HAPPENS AT LLANWERN?
Hot strip mill - this reheats semi-finished slabs of steel to near melting point and then roll them thinner and longer and are then sold as coils. This is being mothballed.Hot strip mill - this reheats semi-finished slabs of steel to near melting point and then roll them thinner and longer and are then sold as coils. This is being mothballed.
Pickle line - This removes oxide scale which forms when the steel is rolled. It is also rinsed and dried before finishing. One of Llanwern's two lines will close.Pickle line - This removes oxide scale which forms when the steel is rolled. It is also rinsed and dried before finishing. One of Llanwern's two lines will close.
Cold strip mill - this process compresses and squeezes steel at room temperature, reducing its thickness and improving its surface and strength. This is being mothballed.Cold strip mill - this process compresses and squeezes steel at room temperature, reducing its thickness and improving its surface and strength. This is being mothballed.
Galvanising line - a coating of zinc is applied for steel for the car market. Llanwern invested £3.6m on its Zodiac line a couple of years ago. This is staying open.Galvanising line - a coating of zinc is applied for steel for the car market. Llanwern invested £3.6m on its Zodiac line a couple of years ago. This is staying open.