Welsh Government says it's in discussions with the Newport steelworks' management on how it can assist.
This is disappointing news, especially as the Cogent operation at Newport has made considerable efforts to drive down costs and increase market share as the steel industry in Europe continues to operate in extremely difficult market conditions.
We are currently in discussion with senior management at the plant to determine how we may be able to assist with future investment in potential projects that could further help increase the efficiency and innovation of the plant.
Welsh Government officials will also liaise with the various agencies and organisations which will be able to work with affected employees to provide advice and guidance and identify alternative sources of employment
Over 120 jobs are set to be axed under plans to restructure a Newport steel plant to secure a more "sustainable and competitive" performance.
Cogent Power, a subsidiary of Tata Steel, said 83 direct jobs and 40 contractor posts were at risk at its Orb Electrical Steelworks.
Managing director Stuart Willie said, "The changes we are making are essential for the long-term future of the operations at Orb. Every effort will be made to support employees and, where practicable, achieve job losses through voluntary redundancies.
"European demand for the grain oriented electrical steels we make is still more than 20% down on 2008 levels and we see high levels of imports into Europe. We anticipate it will be several years before demand returns to 2008 levels."
Roy Rickhuss, general secretary of the Community union, said, "This is yet another example of how the economic recovery isn't reaching the European steel industry.
"The Government could provide some relief in terms of energy costs in the forthcoming budget by freezing the Carbon Price Floor and providing targeted relief from the Renewables Obligation to those foundation industries, such as steel, that are part of the renewables supply chain."
Elkay Electrical in Newtown is to close by the end of the year with up to 40 jobs being lost.
The Welsh Government says senior managers of the company declined an offer to discuss further potential avenues of support, in a bid to try and save the facility.
Montgomeryshire AM, Russell George said, "I am extremely saddened to hear the confirmation of the closure of Elkay Electrical; this is devastating news for everyone affected. This will be a particular blow to the community and on the run-in to Christmas, really doesn’t come at a worse time."
Staff are understood to have been issued with redundancy notices .