Tata Steel, one of the leading steel makers in the world, today announced the next stage in its plans to refocus its speciality and bar business on high-value markets such as aerospace.

The proposed changes would result in a reduction in employee numbers, mainly at is Rotherham-based bar business. This has been underperforming in the face of commodity grade steel being imported to the UK due to the strong pound and high electricity costs which are more than double those of key European competitors.

Karl Koehler, chief executive of Tata Steel's European operations said, ''We have invested more than GBP 20 million in recent years in our speciality steels business. These investments have created a stronger and more technically advanced platform from which we can meet the needs of our customers, with an improved range and quality of products and services.''

Shares of the company gained Rs 0.8, or 0.29%, to settle at Rs 281.50. The total volume of shares traded was 932,539 at the BSE (Thursday).