25/02/2011 03:11 PM
Tata Steel Europe, formerly Corus, will sell Teesside Cast Products (TCP) to Sahaviriya Steel Industries (SSI) in a deal that values TCP at $469 million (£291 million).
The sale of the Redcar plant, which will save hundreds of jobs and is set to create new ones, is due to complete by the end of March.
It follows on from nearly two years of problems over the future of TCP, after the selling process stalled when a consortium illegally pulled out.
"I am very encouraged that after all our efforts we have been able to reach this agreement, which is good news for the highly skilled and dedicated Teesside workforce," said Karl-Ulrich Kohler, head of Tata Steel in Europe, said.
Talking to the Northern Echo, Win Viriyaprapaikit, the president of SSI, said he was inspired by steel workers and their families marching through the streets in aid of the plant.
"I think the community did it. The community has been instrumental in this and we are a passenger on this boat," he said.