Tata Steel intends to cease operations at its Living Solutions site at Shotton, North Wales, UK.
The business was established in 2003 as a downstream diversification using the company’s steel to make modular buildings for the construction industry.
The modular buildings sector is highly competitive and the company said it had already attempted to address the business’s problems by reducing costs and through a restructuring that took place last year.
Despite these efforts, there are no prospects of generating viable new business following the completion of a defence contract.
The proposal will put at risk 180 jobs in the Living Solutions business. Tata said it would explore all opportunities to re-deploy employees where practical.
Other businesses at Shotton, are not affected by the announcement. Andrew Black, MD of Tata Steel Building Systems, said due to the weak construction market and the impending completion of an agreement to supply modules to the defence accommodation sector, Living Solutions had been unable to establish enough market presence to justify continuing with the business.