The Living Solutions business was set-up in 2003 but will now close due to the “continuing weak construction market”.

Andrew Black, Managing Director of Tata Steel Building Systems, said: “It is with great regret that, following a detailed review of the Living Solutions business, we have proposed to withdraw from this business activity.

“Living Solutions was set up as a pilot venture to explore a non-core business prospect downstream of our normal steelmaking activity.

“Given the continuing weak construction market and the impending completion of a long-term agreement to supply modules to the defence accommodation sector, Living Solutions has been unable to establish sufficient market presence to justify continuing with the business, which has never been profitable.

“Clearly this is a very difficult time for our colleagues at Living Solutions and I would like to pay tribute to everyone who has worked so hard to try to develop this business venture.”

Living Solutions specialised in single-living modules for the army, hotel and student accommodation projects.

Tata launched a cost-cutting drive at the business last year but the end of a major defence contract was the final straw for the firm.