26 jobs at risk as Tata Steel shuts Wolverhampton site

Twenty six jobs are at risk after Tata Steel announced plans to close its steel service center in Wolverhampton.

Tata revealed the news today as it also announced the loss of hundreds of jobs in Newport, South Wales, where it is closing its Orb Electrical Steels factory.

Tata said it had failed to find a buyer for its Wolverhampton Engineering Steels Service Center in Wednesfield, which is part of the same Tata Steelpark where65 jobs were cut as part of a restructure in March.

The steel giant said the Wednesfield closure would “potentially affect” 26 roles but some of these will be at a sales office in Bolton.

Meanwhile up to 380 workers face redundancy in Newport after the company said it had been “unable to find a way forward” – an announcement which has been described as a “body blow” by unions.

Consultation

Consultations with affected staff and trade unions will “commence shortly” and include assessing ways to minimise compulsory redundancies, Tata added.

The Newport plant, which is part of Tata’s Cogent arm and produces steel for electrical transmission, had been up for sale since May 2018, while the operation at Wednesfield was restructured five months ago when four loss-making businesses were merged into one.

Henrik Adam, chief executive officer of Tata Steel’s European operations, said: “Continuing to fund substantial losses at Orb Electrical Steels is not sustainable at a time when the European steel industry is facing significant challenges. We saw no prospects of returning the Orb business to profitability in the coming years.

“I recognize how difficult this news will be for all those affected and we will work very hard to support them.”

Unite the union said it will hold Tata’s feet to the fire for assurances to protect workers at the site.

Tony Brady, Unite officer for Tata Steel, said: “The closure of the Orb electrical steel base in Newport is yet another body blow for the economy of Wales.

“Unite will be fighting for every job and holding Tata Steel’s feet to the fire over assurances that workers affected by today’s announcement will be redeployed.”

Labor MP Emma Reynolds, whose Wolverhampton North East constituency covers the Wednesfield steelpark, said: “It is disappointing and concerning news that Tata Steel has announced it will close the Wolverhampton Engineering Steels Service Center, which is one part of its business at the Tata Steelpark in Wednesfield.

“I am seeking urgent reassurances from Tata Steel that it will do all it can to minimise compulsory redundancies, redeploy staff where possible and help those affected into alternative employment.

“I have asked what contact Tata Steel has had with other local manufacturing companies, such as Jaguar Land Rover (also owned by Tata) and Collins Aerospace, about what vacancies these companies might have in the coming months.

“I am also in touch with the trade unions active on the site to offer my support to their members.”

Tata Steel also employs 450 people in Brierley Hill and also has a service center at Horseley Fields and Firsteel in Brockhurst Crescent.

The company, which is part of the Indian conglomerate that also owns Jaguar Land Rover, shut sites in Wombourne, Dudley, Kingswinford and Cradley while investing in Wednesfield in 2012.