Company blames construction downtrun for closure of prefabrication business

Tata Steel has announced that 180 jobs will go at its plant in Shotton, North Wales, as a result of the construction downturn.

Is Living Solutions business, which makes prefabricated buildings, will close as the company concentrates on its core business.

Living Solutions was set up in 2003 by former owners but it never made a profit.

Tata blamed a slow down in the building industry and the end of a defence supply contract.

The company said the closure of Living Solutions would not have an impact on the rest of its operations, with 800 people employed at Shotton.

Andrew Black, Managing Director of Tata Steel Building Systems, said: “It is with great regret that, following a detailed review of the Living Solutions business, we have proposed to withdraw from this business activity. 

“Given the continuing weak construction market and the impending completion of a long-term agreement to supply modules to the defence accommodation sector, Living Solutions has been unable to establish sufficient market presence to justify continuing with the business, which has never been profitable.”

The company said it would arrange a formal consultation process with employees and try to re-deploy employees where practical.