The company, jointly owned with Sweden's Avesta, will shed 1,000 jobs worldwide over the next two years because of what it describes as intense competitive pressure brought on by the Asian crisis.

Avesta is a victim of the Asian crisis

Trade union sources said they believed 350 of the axed jobs would be in UK plants including 100 in Sheffield and more in Pontypool in South Wales.

The company's Sheffield steel plate mill would close as a result of the cutbacks, the union believes.

However, a spokeswoman at the company's Stockholm head office said negotiations would be held with unions over the exact number of job losses.

Union anger

Sheffield's steel plate mill rumoured to close

The general-secretary of the Iron and Steel Trades Confederation, Keith Brookman, said he was very unhappy with the cuts.

"The workforce in Sheffield has been at the forefront of developing and implementing working practices which have enhanced productivity levels and are the envy of other producers."