The business focuses on roll-formed products and assemblies, and is based at the Llanwern site in Newport.
Paul Steele, Tata Steel’s Managing Director for Distribution UK & Ireland, said: "Clearly this is a very difficult time for the people who work for the business and I would like to pay tribute to everyone who has tried so hard to enable this business, which has operated at a consistent loss since 2008, to overcome the continuing economic downturn.
"The business focuses on floor decking systems, highways barrier systems for roads and parapets, and also lightweight frames for a variety of applications. CP’s product range is sold to the construction industry, which has not recovered well from the financial crisis, and to market areas dependent on public procurement activity, which has also been severely affected by the long-running economic downturn.
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"Our markets are highly competitive. On two occasions recently the Company has attempted to address the business’s challenges by restructuring it to focus on new and developing markets. These have included safety platforms for protecting people handling freight and also solar array structures. Despite these efforts, most reluctantly, we have come to the conclusion that there are no prospects of generating sufficient viable new business to sustain this operation."
A full, formal consultation process will take place over a statutory minimum period of 30 days with the Trade Unions and employee representatives, and with all employees on an individual basis. The Company will explore all opportunities to re-deploy employees where practical and to assist those people leaving the business through a range of support services.
(CD)
