The steel industry has been dealt another huge blow after Tata confirmed that more than 1,000 jobs are to be axed.

Most of the jobs will go at the huge plant in Port Talbot, south Wales, where 750 posts will be cut.

But other factories will also be hit, with 200 in support functions and 100 at steel mills, affecting Llanwern, Trostre, Corby and Hartlepool.

Karl Koehler, chief executive of Tata Steel's European operations, said: "I know this news will be unsettling for all those affected, but these tough actions are critical in the face of extremely difficult market conditions which are expected to continue for the foreseeable future.

"We need the European Commission to accelerate its response to unfairly traded imports and increase the robustness of its actions. Not doing so threatens the future of the entire European steel industry.

"And while we welcome progress on UK energy costs, the Government must take urgent action to increase the competitiveness of the UK for its vital steel sector. This includes lowering business rates and supporting energy efficiency and anti-dumping cases so we can compete fairly.

"Tata Steel has been a hugely supportive investor, and has invested £1.5 billion in its UK operations. We now need all stakeholders to do their utmost to meet the unprecedented challenges the steel sector is facing."

The Government was accused of "fast talking but slow delivery" by unions, which said the latest news was devastating for local communities.

The Community union said it will "vigorously" challenge the company's proposals.

General secretary Roy Rickhuss said: "Today's announcement is no reflection of the skills and commitment of the Tata Steel workforce, which has been breaking production records over the past year.

"Rather, it is yet another chapter of the UK's ongoing steel crisis and the lack of a proper Government response.

"This industry needs meaningful action from the UK Government, which up to now has been characterised by fast talking but slow delivery, despite persistent warnings from Community that delays in implementing support for steel would have an impact on jobs.

"Even now, promised compensation for energy intensive industries is yet to be received. The UK Government must step up and work with trade unions and businesses to ensure this industry exists for generations to come.

"The dumping of cheap Chinese steel is one of the biggest causes of this crisis, yet the UK Government remains a cheerleader for China and their bid for 'market economy status', which would decimate what is left of our steel industry. This cannot be allowed to happen.

"As well as Government support, it is absolutely vital that Tata Steel make clear their long-term commitment to steel-making in the UK. The workforce has made significant sacrifices in recent years, on the assurance that jobs would be protected.

"However, rather than delivering on this promise, Tata have simply continued to slash jobs. Tata Steel must now come clean about their long-term commitment to the UK. Community, as the steelworkers' union, stands ready to play our part in securing a future for the industry."

Alan Coombs, a Port Talbot steelworker and president of Community, said: "Today's news is a tragic reminder of the UK's ongoing steel crisis. Here in Port Talbot we make some of the world's best steel, but cheap Chinese imports and high energy costs are crippling our industry.

"This announcement will affect everyone here - steelworkers, engineers and office staff. As the steelworkers' union, Community is ready to work with Tata Steel to ensure that steel-making remains at the heart of Port Talbot for many years to come. However, we will not accept anything that threatens the health and safety of workers or the integrity of the plant.

"Port Talbot is a town built on steel - my father and grandfathers worked here - but we risk losing these jobs forever without more action from Government to create a level playing field on which we can compete.

"Thousands of other families here in Port Talbot rely on the steelworks, it is a source of pride and employment for our town, we simply cannot afford to lose it."

Many contractors and service firms rely on the Port Talbot plant, so direct job cuts will have a knock-on effect across the region.

Dave Hulse, national officer of the GMB said: "Once again this news is heartbreaking for the steel Industry and our members.

"This demonstrates that the Government is asleep when it comes to the serious problems that we are facing.

"Local communities are being destroyed and supply chain companies forced out of business. This is an extremely critical time for the steel industry and our members, through no fault of their own, are being forced on to the dole queues while we wait for action to be taken so we are able to complete on a level playing field."

Unite national officer Harish Patel said: "This is yet more grim news for the UK's world class steel industry. We will be doing everything we can to support our members while pressing Tata Steel for guarantees on no compulsory redundancies.

"The knock-on effects of these latest job losses will be felt throughout the supply chain and the wider manufacturing community across the UK, torpedoing George Osborne's promise to rebalance the economy.

"When will the penny drop with Government ministers that a strategically important part of the UK economy faces wipe-out because of their continued failure to take decisive and swift action? It dropped years ago with countries like Germany and the USA who support their steel industry, but has so far failed to do so with minsters here in the UK.

"Guidance from the Government on the procurement of British steel for infrastructure projects is all well and good, but it needs to be urgently turned into orders and cast iron guarantees that if it's built for Britain it uses British steel.

"The consequences of not taking action to decisively support our steel industry and tackle the dumping of Chinese steel will be more devastating announcements like the one today."

Andy Richards, Unite's Wales secretary, added: "Steel runs through the heart of the Welsh economy and through the veins of the communities affected by this announcement.

"With a proud tradition of steelmaking, some of the best steel in the world is made in Wales. Job losses on this scale will reverberate through the supply chain, communities and associated industries across Wales."

Gareth Stace, director of trade body UK Steel, said: "This is deeply disappointing news and I am very concerned about the future of the plant and community. This is a site of critical importance to our national industrial infrastructure.

"The job cuts reinforce everything we have been saying about the importance of swift action by all involved to tackle the problems facing our steel industry. We have been dealing for some time with a toxic cocktail of conditions, from Chinese dumping of steel to the high cost of energy, and have warned that a strong and rapid response in the UK and in Brussels, is required.

"It is clear that Government, the workforce, unions and Tata must work closely together to ensure this important steel making plant has a strong and secure future. Management and employees must demonstrate through investment on the one hand and a commitment to reduce cost and improve productivity on the other, that the plant has a viable future.

"The whole industry needs to be reassured that ministers and officials - in Westminster and in Cardiff - are doing everything possible to support the future of steel production.

"The Government's review of business rates could significantly reduce the multi-million-pound bill the plant has to pay while ministers should also consider offering grants that would help the site improve its long term sustainability. The Government needs to be creative, co-operative and fleet of foot to make sure every possible option for support is considered."

Business Minister Anna Soubry said: "The steel industry is having to take tough decisions in the face of extremely challenging conditions but this is deeply disappointing news.

"Our immediate focus will be on working with the Welsh Assembly to support workers in South Wales as well as other Tata UK sites to find new jobs as quickly as possible.

"The Government continues to engage closely with Tata on how we can help during this difficult period."

"The Government has taken clear action to help the industry, through cutting energy costs, taking action on imports, Government procurement and EU emissions regulations, meeting key steel industry asks."

Shadow business secretary Angela Eagle said: "This is devastating news for all of the workers, their families and the close-knit communities affected.

"Local members of parliament, trade unions and others are doing all they can to assist those impacted by today's announcement and working to put the steel industry on a sustainable footing for the future.

"Labour has long called for David Cameron's Government to take immediate action to help the steel industry, but they've sat on their hands while the industry has descended further into crisis.

"Vital reform of EU trade defence instruments, for example, has been blocked by a number of countries, principally led by this Tory Government. At a high-level meeting with senior representatives of the European Commission in Brussels last week, I made my frustration at the lack of action - specifically with regard to the surge of imports of steel rebar from China - absolutely clear.

"Only by taking immediate and decisive action, not least by fully engaging at an EU level, can the Government make sure our steel industry survives so that it can benefit from planned infrastructure spending. If this doesn't happen urgently, the Tories' laissez-faire attitude to our steel industry could lead the downturn into a death spiral."

Almost 5,000 job losses have now been announced in the steel industry since last summer as firms struggle with high energy costs and cheap Chinese imports.

Previously announced cuts include 2,200 at Redcar (SSI), 900 at Scunthorpe (Tata), 450 at various locations (Caparo), 225 at Dalzell (Tata) and 45 at Clydebridge (Tata).

Welsh Secretary Stephen Crabb said: "These proposed job losses are a severe blow to the community of Port Talbot and the local economy. Workers and their families at the plant face a deeply worrying time, and our priority is to help those likely to be affected.

"The UK Government will keep doing what it can to support a steel industry suffering intense pressures from cheap steel imports and a global slump in prices. That involves working with Tata to ensure they remain a significant presence in South Wales."

TUC general secretary Frances O'Grady said: "With the manufacturing sector now in recession, the last thing Britain needs is further damage to the steel industry. Steel is a foundation industry on which other sectors depend. Britain desperately needs a real industrial strategy.

"Cheap Chinese steel imports are wrecking the steel industry. The Government must take measures to prevent China from dumping cheap steel on the world market.

"The British Government can start by opposing the granting of market economy status to China, and by using business rates and procurement policy to protect this vital industry."

Ben Cottam, of the Federation of Small Businesses, said: "Today's announcement is a hammer blow for the whole community of Port Talbot, and will have severe repercussions for the local economy.

"We have not seen job losses like this in Wales since the closure of the Ebbw Vale Steelworks. In the light of this news we would urge the Welsh Government to bring forward measures to aid both those SMEs (small to medium-sized enterprises) in Tata's supply chain locally, and those businesses in the wider Swansea Bay area that will be hit as the result of the loss of so many well-paid jobs."

Prime Minister David Cameron's official spokeswoman said: "It will be a worrying time for the workforce. We have taken action to help the steel industry and are working with them on some of the key steps that they think can be taken - for example, looking at how to cut their energy costs, taking action on imports, introducing new measures on Government procurement and working at the EU level.

"The challenge is that this is a broader global crisis facing the steel industry. We have seen that the price of some steel has almost halved over the last year alone and European steel demand hasn't returned to the pre-financial crash level.

"Today our focus will be on how we can work with the Welsh Government and look at what support is being offered to the workforce."