TALKS to secure hundreds of North-East steel jobs are continuing, it can be revealed.

Tata Steel remains in negotiations with Liberty House over its Hartlepool pipe mills.

A source last night confirmed Liberty retains a strong interest in the operation, though both companies refused to be drawn on the nature of the discussions.

The Northern Echo previously revealed Liberty was interested in taking sections of the pipe mills, which process steel for the offshore energy sector.

If its bid is successful, it is understood around 250 jobs would be secured, with a similar number of staff staying on at Tata’s 20-inch Hartlepool mill, which is not being put up for sale.

Tata has already offloaded its loss-making Long Products division, which employs hundreds of workers across the North-East and York, to investor Greybull Capital and the business has now announced a further agreement with Liberty, which could pave the way for a £100m sale.

The duo have signed a letter of intent, which allows Liberty to enter into exclusive negotiations over Tata’s speciality steels business that makes high-value steel for the automotive and aerospace sectors and includes electric arc and purifying sub-divisions in Yorkshire.

It does not include the Hartlepool site.

Bimlendra Jha, chief executive of Tata Steel UK, said a sale would be an important step in securing the company’s long-term future, as it continues to battle cheaper imports, lower sales and rising energy costs.

Reiterating a trading update from earlier this month, which stated “the sale process of Hartlepool pipe mills is ongoing”, Mr Jha said “we continue to actively seek solutions to the company’s structural challenges (as) there is the need to develop a more sustainable business in the UK.”

Sanjeev Gupta, Liberty’s executive chairman, added: “We recognise the world-class skills of the speciality steels workforce and are eager to join with them to develop the business and increase market share, both domestically and internationally.”

Roy Rickhuss, general secretary at the Community union, said the agreement was a positive step but urged caution, saying the wider steel sector still faces numerous challenges.

He added: “After months of uncertainty, this will be welcome news for thousands of workers.

“However, there remain huge challenges that Government must address; energy costs, business rates and procurement rules continue to put British businesses at a disadvantage.”

Earlier this month, Tata was forced to deny union claims it was looking to close the British Steel Pension Scheme to sidestep a £60m payment.

It has long been claimed the fund is a deterrent to potential buyers of parts of Tata’s UK business.

The company’s former Long Products division is now known as British Steel, with its Teesside Beam Mill securing work on London skyscrapers and Scunthorpe United’s new football ground.