The company said it is reviewing jobs at the site

Outokumpu, the world's second-largest stainless steel producer, blames a global oversupply of steel for the proposed job cuts at its Tinsley site.

Around 100 jobs may go at the melting shop and 200 may go at the coil division early next year.

Nobody from the steel workers' union, Community, was available for comment.

Consultations started

In a statement the company said it needed to take action to safeguard its future.

"The trade unions and employees have been informed that 300 jobs are under review at the melting shop and cold rolling units on its Shepcote Lane site, where over 1,000 employees work.

"Ninety days of consultation has commenced and the current workforce will be retained until these discussions have been concluded in the New Year.

"These proposals are in response to an unprecedented global over supply situation, and they are part of a company-wide programme aimed at improving profitability to safeguard the future of Outokumpu."

Michael Leahy, the general secretary of the trade union Community said: �Outokumpu has informed union representatives of their decision to shift production to Tornio and reduce the number of shifts at their Sheffield plant.

However they have also confirmed that they do not intend to make any redundancies this year and that they are purely involved in worst case planning should demand not improve. �Community representatives are in discussions with the company about possible routes to further productivity improvements.

We are committed to playing our part in making Outokumpu's Sheffield plant as competitive as possible, but don't believe that necessarily will involve 300 job losses. We certainly don't see it as set in stone.

�However, should any voluntary redundancies be required next year then we will work in partnership with the company to ensure that those taking up the offer have access to the highest quality education and training support to enhance their opportunity of re-employment in a high quality job.�