Tata Steel intends to cease operations at its Living Solutions site at Shotton, North Wales. The business was established in 2003 as a downstream diversification using the Company’s steel to make modular buildings for the construction industry.
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. Living Solutions was set up as a pilot venture to explore a non-core business prospect downstream of our normal steelmaking 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.
“Clearly this is a very difficult time for our colleagues at Living Solutions and I would like to pay tribute to everyone who has worked so hard to try to develop this business venture.”
The modular buildings sector is highly competitive and the Company has already attempted to address the business’s problems by reducing costs a