Tata Steel is cutting 70 jobs at its Llanwern site in Newport, Wales, UK
The company said it decided ‘with great regret’ to close the Tata Steel Construction Products (TCSP) business amid the economic downturn.
Paul Steele, Tata Steel's managing director for distribution UK and Ireland, said: "It is with great regret that, following a detailed review of the TSCP 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."
Mr Steele, said the construction industry had not recovered well from the financial crisis, and Tata's markets were highly competitive.
He said the company had twice recently restructured ‘to focus on new and developing markets,’ but added: "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 employs about 7,500 staff in Wales, with about 1,400 at Llanwern.