Aiming to revive its loss-making long-product business in Europe, Tata Steel [ Get Quote ] on Friday said it plans to invest 400 million over five years, shut or mothball parts of Scunthrope plant and slash 1,500 jobs in England [ Images ].

The steps were necessitated, it said in a release, in the wake of successive loss incurred in the past two years by the unit over sluggish demand from UK's construction sector.

"Tata Steel has proposed a restructuring of its long products business to target high-value markets and introduce greater flexibility into its costs and operations. To support this strategy, Tata Steel plans to invest 400 million over a five-year period," it said.

Demand for structural steel in the UK is only two-thirds on the 2007 level and is not expected to fully recover within the next years, the statement said.

"As a consequence, the business has proposed a plan to further reduce costs, focus on products that create value and improve its ability to respond quickly to demand fluctuations.

"The strategy includes a proposal to close or mothball parts of the Scunthrope plant and put at risk 1,200 jobs at Scunthrope and 300 jobs at the Teesside sites," it added.