First Minister Nicola Sturgeon has set up a taskforce in a bid to save jobs at Tata Steel.

Tata announced plans to cut 1,200 posts days today.

Around 900 jobs will be cut from the firm's giant plant in Scunthorpe, with 270 in Scotland and a small number in other sites.

Nicola Sturgeon said the Scottish Government Steel Task Force, which will be chaired by Business minister Fergus Ewing, will look for new owners for some or all of the business.

The task force will also support affected workers to keep them in place while alternative operators are found and consider the regeneration needs of the wider area.

It will include representatives from Tata Steel, trade unions, North Lanarkshire Council, South Lanarkshire Council, Scottish Government agencies and local politicians.

The Task Force will meet for the first time next Thursday (October 29).

Sturgeon said: “This is a very anxious time for Tata Steel employees and their families and is deeply concerning for everyone involved.

“My government is determined to fight for a future for our steel industry.

“That is why I have established a Scottish Steel Task Force – to be chaired by my Business Minister, Fergus Ewing - that will bring together all the key representatives to work to keep the Dalzell and Clydebridge plants open.

“We will leave no stone unturned in our efforts to keep the plants open and support the 270 staff affected by today’s announcement.”

Business Minister Fergus Ewing said: “The Scottish Government’s priority is finding a way to continue with commercial production at the sites.

“Since Tata Steel first announced the potential sale of its Long Products Division last year, the Scottish Government and Scottish Enterprise have been in constant contact with the company and trade unions, exploring every possible option to keep these plants operational.

“Building on the significant amount of work that has taken place and given the potential impacts on the workforce, local communities and wider industry in Scotland, I am now convening a joint Scottish Steel Task Force to work closely with Tata Steel, trades unions, local councils and politicians.

“I will be writing to the UK Government to urge them to respond quickly to industry demands for action and to play their full part in our efforts to keep these plants open.

“The Task Force’s focus will be to explore every option to find a viable future for the two sites. Market conditions are hugely challenging but we will explore all options to keep operations going and secure as many Scottish steel jobs as possible.

“The search for an alternative operator is our priority, however our initiative for responding to redundancy situations Partnership Action for Continuing Employment stands ready to work with Tata Steel and with workforce representatives to provide a tailored package of support, if required, to minimise the time any individuals affected by redundancy are out of work. The Task Force will also look to accelerate regeneration activities in the local area.”

Tata said the cuts were in response to a shift in market conditions caused by a "flood" of cheap imports, particularly from China, a strong pound and high electricity prices.

The latest bad news follows the announcement that the Thai owners of the Redcar steelworks on Teesside, SSI, had gone into liquidation with the loss of 2,200 jobs, then Caparo went into administration yesterday.

Karl Koehler, chief executive of Tata Steel's European operations, said: "I realise how distressing this news will be for all those affected. We have looked at all other options before proposing these changes.

"We will work closely with affected employees and their trade union representatives. We will look to redeploy employees, wherever possible, and minimise employee hardship.

"The UK steel industry is struggling for survival in the face of extremely challenging market conditions.

"This industry has a crucial role to play in rebalancing the UK economy, but we need a fairer system to encourage growth. The European Commission needs to do much more to deal with unfairly traded imports - inaction threatens the future of the entire European steel industry."

Roy Rickhuss, general secretary of steelworkers' union Community, said: "Our immediate thoughts are with the workers and their families who will be affected by this announcement. Community representatives will be looking to sit down with the company, to understand the detail and to look at all alternatives that save jobs and uphold our principle of no compulsory redundancies. We will also be putting in place advice and support for our members who are affected.

"The Government should hang its head in shame at today's news. The cruel irony of the Prime Minister welcoming the Chinese Premier as UK steel jobs are cut partly due to Chinese steel dumping will not be lost on the UK's steelworkers and their communities. We have been saying for years that more Government action is needed to support UK steel as a vital foundation industry. We have made clear that the situation is urgent. Despite these warnings the Government has been too slow to respond.

"It is not enough for David Cameron to 'raise' the issue of steel dumping with the Chinese, he should be telling them what action he will be taking to stop steel dumping. The UK Government could also show its support for the UK steel industry by bringing forward the compensation package for energy intensive industry. UK steelmaking is on its knees but I know that steelworkers across the UK are determined to fight for their future for the sake of their jobs, their families and their communities.

"There is also a role for the Scottish Government to ensure that today's news does not signal the beginning of the end of Scotland's steel heritage and that they honour the commitments they gave over the weekend to intervene in the interests of steelmaking in Scotland."

Paul McBean, a Community official at the Scunthorpe site, said: "This is devastating news for everyone and their families. It's another blow to Scunthorpe steelmaking. The workforce has done everything we can in recent years to make a success of the business and give us the chance of a future. But we can't do it alone. We need the Government to step up and take action.

"The Prime Minister needs to show that he wants a steel industry in the UK. We need a sign that we've got a future. All we want is a level playing field to compete on."

Ross Clark, Community's lead rep at the Tata Steel plant in Dalzell, said: "Everybody's devastated and worried by today's news. We've faced a lot of challenges in this business and we've overcome them but now our future is uncertain. We welcome the fact the Scottish Government is going to set up a task force and Community will play a full role in that.

"The task force must deliver on the promises the Scottish Government has made in recent days to save our steel. It needs to come up with real, practical solutions that protect the workforce, the skills and the assets until we can find an alternative and sustainable future."

Gareth Stace, director of trade body UK Steel, said: "Our fears about further job losses have now been confirmed. If we are to stem this tide then the Business Secretary must now deliver as a matter of urgency the commitments he made at last week's summit, on energy costs, business rates costs and tackling unfair trade. In addition, we must also see a commitment from all parts of government at the highest level to ensure the sector's survival in the UK.

"The Prime Minister can demonstrate that he is prepared to lead this commitment by stepping in this week and pressing the Chinese Premier about the dumping of under-priced steel, which is one of the major factors killing our industry."

Tata said that in the past two years, imports of steel plate into Europe have doubled and imports from China have quadrupled, causing steel prices to fall steeply.

At the same time, a stronger pound has undermined the competitiveness of the business's Europe-bound exports, and encouraged more imports.

In response, Tata Steel said it was concentrating on higher-value markets, with a focus on developing stronger and lighter products for its customers.

Bimlendra Jha, executive chairman of the Long Products Europe business, said: "Today's proposals mark the next step in reshaping our business to give it the best chance of survival in this fiercely competitive global marketplace. We are looking closely at the performance of all parts of Long Products Europe as part of a focus on returning to profitability."

Tata said it was starting immediate consultations with workers and their union representatives.

Paul Kenny, general secretary of the GMB, said: "Only the UK Government acting with the EU can deal with dumping of steel and green taxes on energy prices. There has been no action.

"Look at the dismal record:

- 16th July Tata Steel announce 720 jobs losses in Rotherham, Stocksbridge and Wednesbury. No action from Government.

- 25th August Tata announce 250 redundancies in strip steel at Llanwern. No action from Government.

- 18th September 2015 SSI announce 2,200 jobs at Redcar under threat. No action from Government.

- 19th October steel firm Caparo in administration. No action from Government.

- 20 October Tata announce 1,200 jobs to go in Scunthorpe and Lanarkshire. No action from Government.

"Parliament has to insist on immediate action on steel."

Tata said plate mills in Scunthorpe, Dalzell and Clydebridge would be mothballed, while one of the two coke ovens at the Scunthorpe steelworks would be closed under today's proposals.

Unite assistant general secretary Tony Burke said: "This is a dark day for the UK steel industry, for the workers and the communities who livelihoods depend on steel. We will be working closely with Tata to find alternatives and to save as many jobs as possible.

"The knock on effects of today's news combined with Caparo and the closure of Redcar through the supply chain will be devastating. Trade unions, the industry and business groups are all united on the need for the UK Government to support the steel industry.

"Sajid Javid (Business Secretary) is becoming increasingly isolated by his failure to act swiftly to support the steel industry. He and the UK Government know what needs to be done and they need to do it quickly. A failure to act and tackle the dumping of cheap Chinese steel will spell the end of steel in the UK."

Unite's Scottish secretary Pat Rafferty added: "Today's news effectively brings an end to a proud tradition of steelmaking in Scotland. The impact on the Scottish economy which is also being hammered by job losses in North Sea oil will be severe unless there is urgent support.

"We will be pressing the Scottish Government to live up to its promise to do everything it can to support the steel industry in Scotland and save jobs. The UK Government should take note of the Scottish Government's more proactive response and act to save our steel across the UK."

Asked whether the Government could do anything to help British steel companies, Prime Minister David Cameron's official spokeswoman told a Westminster media briefing: "We recognise the enormous challenges facing the steel sector and we have been working with industry on this to see what more can be done. That's why we convened the summit last Friday to really focus minds and provide an opportunity for ministers to have discussion with the industry.

"There are steps we have taken. We have paid out more than £50 million in compensation to industries in the steel sector for the costs related to energy-intensive industries.

"We are looking at what lessons can be learnt from other countries in the EU and beyond. We are working to boost productivity and cut production costs. And, as the PM was saying in the House yesterday, we've done things like voting to extend the EU's anti-dumping measures on certain steel products.

"We are concerned about the situation and will continue working with the industry to see what more can be done."

The spokeswoman said the Government would "look at the ways in which we can drive up the number of public procurement contracts that are being won by UK steel manufacturers and their partners, while ensuring that this is through fair and open competition".

She confirmed Mr Cameron was expecting to raise the issue of steel in talks with Chinese President Xi Jinping in Downing Street on Wednesday.

"It will be an opportunity to talk about the different challenges facing our economies and the way that decisions taken by one impact on another," she said.

"There are a number of challenges facing the UK steel industry. Competitive pricing from China is one of those, but so is global over-production and the fall in the steel price."

Speaking in Scunthorpe after talking to workers, Mr Jha said: "These are very distressing times.

"It is not just a question of Tata Steel. It's a question of manufacturing industry in Britain.

"It is a fight very clearly for the future of manufacturing industry in Britain.

"We have to act in unison to put up a fight together."

Mr Jha said: "In the cradle of the Industrial Revolution, I don't want Britain to be the first country to shut its door on manufacturing."