See an aerial photograph of the old steelworks site, after it was cleared of buildings. Enlarge Image

Corus Strip Products (CSP) UK said the job losses were driven by the company's commitment to create a sustainable strip steel industry in south Wales.

The losses were confirmed as a �1bn redevelopment of part of the Llanwern site was given council backing.

A consultation will be held but the 212 jobs from the 1,500-strong workforce are expected to go later this year.

The firm's managing director Phil Dryden said Llanwern still had a "critical role" to play alongside a hot rolling mill at Port Talbot.

He added: "Our business performance continues to improve, reflected in the fact that we have recruited some 500 people into CSP UK over the last three years."

Redundancy terms

He said the job losses would ensure the company had "the right people in the right place in the right organisational structure," and they would continue to recruit "new young talent" for the future.

The company is now in formal consultation with trade unions over redundancy terms and said every effort would be made to find jobs internally for those affected.

The steelworkers union Community has said it will fight the job losses.

Also on Thursday, it was confirmed developers have been given outline planning permission for the regeneration of a 600-acre site, which was once part of the old Corus steelworks at Llanwern.

In a project creating around 6,000 jobs, 4,000 new homes, two new schools, cafe bars and three lakes are planned.

Developers St Modwen have said the project would take 20 years to complete and work should start later this year.

Redevelopment of this site, which lies three miles east of Newport and is close to the M4, has been recognised as one of the main regeneration opportunities in Wales.

Tata, which recently took over Corus, employs around 1,500 workers at Llanwern, but previous owners Corus sold off 600 acres to St Modwen in 2004 after it finished iron and steel making with the loss of 1,300 jobs in July 2001.

"Symbolic"

Newport City Council leader Bob Bright said he was pleased the site of so many job losses was set to become one of the largest brownfield development sites in England and Wales.

"The St Modwen development at Llanwern is symbolic of how far this city has come in the past few years," he said.

A Welsh Assembly Government spokesman said the project was a major step in the continuing regeneration of the city.

The 4,000 new homes will cater for all sections of the housing market

The 4,000 new homes will cater for all sections of the housing market, with 20% of the total being "affordable" homes and the balance ranging from apartments to large detached houses.

There will also be a large areas set aside for office, factory and warehouse space.

The initial phase of the infrastructure works should commence later this year with the first dwellings and employment buildings being developed next year.

Facilities being provided by St Modwen for the community will include two new schools, lakes and other open spaces and a park-and-ride facility to serve a new railway station.

Substantial new sports and play areas will be created, together with a multi-purpose community centre, and a district centre with local shops, caf� bars and restaurants.

At the heart of the new development will be three inter-connected lakes and a substantial park area.

Anthony Glossop, chairman of St Modwen said they were delighted to be carrying out one of the largest regeneration schemes in Wales.