Steel giant Tata is closing a steelworks in South Wales with the loss of up to 380 jobs.
The Orb Electrical Steels plant in Newport is to close after Tata failed to find a buyer.
Tata said the Orb Electrical Steels business has been loss-making for several years as it struggled to compete.
Henrik Adam, CEO of Tata Steel’s European operations, said: ‘Today’s proposal will be sad news for colleagues at Orb in South Wales.
‘This is necessary, enabling us to focus our resources, including investment, on our core business and markets, helping us build a long-term sustainable future in Europe.’
Mr Adam added: ‘Continuing to fund substantial losses at Orb Electrical Steels is not sustainable at a time when the European steel industry is facing considerable challenges. We saw no prospects of returning the Orb business to profitability in the coming years.
‘I recognise how difficult this news will be for all those affected and we will work very hard to support them.’
A mockery of the understanding we reached
Roy Rickhuss, General Secretary of the steelworkers’ trade union Community, said: ‘This is shocking news, which makes a mockery of the understanding we reached with Tata around the jobs guarantee.
‘There has been no consultation about this proposal either at UK or European level and company management should hang their heads in shame in the way this has come about.
‘This is of course extremely devastating news for the workers affected.’