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Tata Steel mothballs Llanwern hot strip mill - 2 December 2011

Tata Steel is mothballing its hot strip mill at its Llanwern site in Newport, South Wales, because of the weak market, the company tells Steel Business Briefing.

The mill has a capacity of around 3 million tonnes/year, though it has not been at this level for some time, SBB understands.

It will remain down until the “UK economy and steel demand justify a restart,” the company says. Customer deliveries will not be affected and Tata can supply the market from its other hot strip mill in Port Talbot, where it says costs are lower. The Llanwern cold rolling mill and Zodiac galvanising line will continue to operate.

The mill has a “flexible working model” which was designed in 2009, when it was idled for nine months. 115 roles carried out by fixed-term contract employees, agency workers and contractors will be impacted.

 

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