The Corby plant produces welded steel tubes including structural sections for the construction industry.
Remco Blaauw, Managing Director of Tata Steel’s European tube business, said: “Our announcement today follows a detailed review of all our European tubes activities.
“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.
“Our priority is to minimise the impact on our employees, and to assist affected colleagues through a difficult process.
“Our goal is to secure a sustainable tubes business which will not only weather the current economic storm, but can prosper in the future.”
A 90-day consultation process is now underway with the trade unions and affected workers.
The downturn in demand has also seen Kent based manufacturer Thamesteel placed in administration yesterday with the threat of 400 job losses.