Private-sector Tata Steel Europe is closing its Degels service centre in Neuss, Germany.
The site primarily processes industrial hot-dip galvanised coil and employs around 80 people. A source close to the company said the closure is part of Tata's transformation programme.
Tata Steel managing director TV Narendran recently told Argus the transformation programme would be looking at downstream assets, as well as reducing costs where possible in the upstream business.
Services currently carried out at Degels will be relocated to the firm's Gelsenkirchen site, also in North Rhine-Westphalia, and its Maastricht site.
"The changes will ensure a continuing high level of service to customers, while reducing Tata Steel's costs at a time when the European steel industry is facing economic headwinds," a company spokesman said when confirming the closure.