Amid subdued demand for steel tubes, Tata Steel today said it plans to lay

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off 200 employees at four factories located in the UK and the Netherlands.

The demand for steel tubes, which mostly find application in the petroleum sector, has been on the wane for quite some time now and Tata Steel does not see good demand even in the foreseeable future.

"Four of the company's tubes sites in the UK and the Netherlands will be affected. There are anticipated to be 110 job losses at Corby, in the UK; and, in the Netherlands, 17 in Zwijndrecht, 28 in Maastricht and 45 in Oosterhout," it said in a statement.

Under its strategy for revival of the steel tube business, Tata Steel intends to focus on improving efficiency to withstand the current weak market trend and restore profitability.

"Our goal is to secure a sustainable tubes business which will not only weather the current economic storm, but can prosper in the future," said Tata Steel European Tube Business Managing Director Remco Blaauw.

Blaauw said the lay-off plan was formulated following a detailed review of all European tubes activities of the company.

"In response to the prolonged downturn in all European markets for tubes and in the context of intense competition, the measures announced today are designed to bring these sites into a sustainable financial position," he said.

Tata Steel said it would now start a 90-day discussion process with trade unions, employee representatives and all the affected 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," it said.

Tata Steel is now one of the top 10 steel-makers in the world, with an annual steel-making capacity of more than 28 million tonnes. It employs around 80,000 people across four continents.