United Kingdom
Wales; East Wales; Monmouthshire and Newport
Location of affected unit(s)
Manufacture Of Basic Metal And Fabricated Metal Products
Manufacture Of Basic Metals
24.10 - Manufacture of basic iron and steel and of ferro-alloys

380 jobs
Number of planned job losses
Job loss
Announcement Date
2 September 2019
Employment effect (start)
Foreseen end date


Orb Electrical Steels has announced plans to close its site in Newport, which is planned to result in the loss of 380 jobs. Part of Tata Steel, the company was put up for sale in May 2018 due to its long-term viability concerns. The site manufactures electrical steel used in power transmission: the sector suffers from over-capacity and struggles to compete with big-volume manufacturers especially from China. A spokesperson for the company confirmed that the company itself has been able to create a profit margin only in two out of the past 10 years, with the last four years marked by financial losses.

Consultation on the proposals is due to begin imminently. The company said that it aims at reducing compulsory redundancies and at redeploying staff where possible. A spokesperson for the Unite union stressed the impact of this decision on the local economy and assured the union's intention to avoid the loss of decent, well-paid jobs. A spokesperson for the Community Union argued that there had been no prior consultation at UK or European level and called for UK Government to intervene. The Welsh Minister for Economy and Transport stated the devolved government's support for individuals and the whole community.



Eurofound (2019), Orb Electrical Steels, Closure in United Kingdom, factsheet number 98441, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/98441.