UP TO 1,000 jobs at steel plans in Llanwern and elsewhere in the UK could be lost if plans by the management team to buy the operation go ahead.

In March Tata Steel, which owns plants in Llanwern, Caerphilly, Port Talbot and elsewhere, announced plans to sell off its entire UK operation, putting tens of thousands of jobs at risk.

Although hopes were raised after a team of managers from the firm’s UK division broke off to put together an employee buyout bid, the group has now said if it is successful it could cut “up to 1,000” jobs.

In a statement the newly-formed Excalibur Steel said: "The opportunity for greater efficiency involves evolving from a highly functional centralised business model, with significant fixed costs and overheads.

"This arises because the existing arrangements are based on a pan-European structure.

"Excalibur's proposals will see a migration towards leaner autonomous sub-business units.

"In the event Excalibur is successful in acquiring Tata's UK steel assets this will inevitably take some time to achieve.

"Potentially this could affect up to 1,000 jobs across the entirety of the operation."

General secretary of the Community union Roy Rickhuss called the news “worrying”.

“We have had no discussions with Excalibur about additional job losses, he said.

"We await to see the details of their plans for the business and any implications for jobs.

"However, this news is somewhat surprising given that their bid is based on the original turnaround plan, which included a restructuring of 1,050 jobs that is ongoing."

And general secretary of trade union Unite Tony Burke said protecting jobs “must be at the forefront of any potential bidder’s plans.

"Protecting jobs in the UK steel industry and making steel here in the UK is the priority of our members,” he said.

"We will be seeking details directly from both Excalibur and Liberty House on their proposals over the coming days, including their plans for employment levels across the UK."

Liberty Steel, owned by Monmouthshire businessman Sanjeev Gupta, has also publicly expressed an interest in Tata’s UK holdings, and last week First Minister Carwyn Jones told the Argus “several, possibly five or six” such expressions had been made.