By Alex MacDonald

 

LONDON--Tata Steel Ltd. (500470.BY) is looking to cut 250 jobs linked to the closure of its Llanwern steelworks in south Wales, one of its largest labor unions said Wednesday.

Tata Steel, Europe's second largest steelmaker by capacity after ArcelorMittal (MT), is planning on mothballing the hot and cold mills as well as one of its pickle lines at the steel processing facility, said the GMB Union in a statement. The company, however, will retain its hot coil finishing and the zodiac line, which produces steel for automotive customers, the union said.

Tata Steel, part of India's Tata Group, declined to comment.

Tata Steel has been seeking to restructure its operations in light of lackluster steel demand in Europe, particularly for steel construction products, where demand is still hovering below the high levels of 2007, the year before the financial crisis began to take its toll on the regional economy and dented steel demand.

 

Write to Alex MacDonald at alex.macdonald@wsj.com

 

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(END) Dow Jones Newswires

August 26, 2015 10:14 ET (14:14 GMT)

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