AS the steel crisis rages, the boss of a third-generation Teesside distribution firm has vowed Tata’s woes will not damage its £6.5m venture.

Gary Dawson, AV Dawson managing director, said his company will remain intrinsic to the steel sector, regardless of Tata’s sell-off proposals.

Mr Dawson’s Middlesbrough-based company last year built a 102,000sq ft steel shed to store and distribute nearly 300,000 of tonnes of steel coil every year for car manufacturing.

The base, on Dawson’s sprawling site close to the River Tees, includes a track for trains to deliver cargo from Tata’s Port Talbot operations, and holds goods before they are taken to customers, including Sunderland’s Nissan.

Tata’s decision to offload its UK operations had raised fears for the long-term future of the shed.

However, Mr Dawson, the grandson of company founders, Vernie and Eleanor, told The Northern Echo he remains confident of the endeavour, irrespective of what Tata does.

Pointing to Nissan’s decision to spend £22m on another Wearside Qashqai production line, he said: “The industry has been in significant difficulty and is experiencing a great deal of flux at the minute, which can understandably make people feel nervous.

“We have every confidence in Tata Steel and the steel supply chain into the North East automotive sector.

“Our backing for British steel goes beyond any patriotic support; we have to recognise the quality of UK-produced steel is simply better.

“The Government announcements (about considering all options for Port Talbot) are a positive move towards ensuring the future of the British steel industry, automotive particularly.

“With the strength of the automotive sector and the increasing demand of North-East automotive manufacturing, illustrated by Nissan’s announcement, we are confident, regardless of the outcome at Port Talbot, there will still be a requirement for the local distribution hub we provide in Teesside through our steel store.

“It’s likely to be several months, however, before we see a clear picture of the future.”

The steel shed was the final part of a larger expansion at 78-year-old Dawson, which saw it create jobs, build a £3.4m deepwater quay, and set up a £2.6m rail terminal.