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, which include Tata Steel Colors, Panels and Profiles and other Tata Steel facilities are not affected by the announcement.
Andrew Black, managing director of Tata Steel Building Systems, said that due to the continuing weak construction market and the impending completion of a long-term agreement to supply modules to the defence accommodation sector, Living Solutions had been unable to establish sufficient market presence to justify continuing with the business, which was never profitable.