A Welsh Government spokesman said:
"This is hugely disappointing news that will be a blow to both the local economy and community. We will work with Tata to see what help we can provide to workers affected by this decision.
"The current global economic situation and the deteriorating market for steel in Europe have hit Tata hard and other European steel makers have already announced measures to reduce production by mothballing or closing plants.
"We are clearly aware of the challenges facing the steel industry. In addition to weak demand for steel, rising energy costs continue to place considerable burdens on the sector and across the Welsh economy. The First Minister has written to the Prime Minister to highlight this issue, and to ensure that our energy intensive industries are not disadvantaged by increasing energy prices and additional environmental burdens.
"While the Chancellor did announce some measures this week to alleviate some of our concerns, these will not provide any relief until at least 2013. We need urgent action now if we are to support our economy and provide the growth we need."