TALKS to secure hundreds of steel jobs are continuing, The Northern Echo can reveal.

Tata Steel remains in discussions over the future of its Hartlepool pipe mills.

The Echo previously revealed Liberty House Group was interested in taking on sections of the operation, which processes steel for the offshore energy sector.

Tata confirmed talks are ongoing with an unnamed party, while a Liberty spokesman said it was unable to comment.

However, industry sources say if a bid is successful, around 250 jobs could be safeguarded, with a similar number staying at Tata’s 20- inch Hartlepool mill, which the Echo understands is not for sale.

The update came after Tata revealed a £100m agreement to sell its Speciality Steels business to Liberty, which officials say includes a Rotherham-based electric arc steelworks and can annually make more than a million tonnes of liquid steel from recycled scrap.

The deal, separate to any Hartlepool agreement, is the latest phase in a restructure of Tata’s operations, which aims to strengthen future production at its Port Talbot works and comes amid a focus on higher-value automotive and construction steels.

Last year, Tata offloaded its loss-making Long Products division to investor Greybull Capital for £1 to ease some of the burden caused by Chinese dumping, lower prices and higher energy costs.

Referring to its Speciality Steels sale, Bimlendra Jha, chief executive of Tata Steel UK, said: “This marks another step in realising a sustainable future for our Port Talbot-based supply chain.

“Like with Long Products, we will be handing over a business that has been transformed following difficult decisions to re-focus on highervalue markets.”

Sanjeev Gupta, Liberty executive chairman, added: “We are acquiring a worldclass business with a very skilled workforce and broad range of products.

“I am confident it will flourish in our group.”

The Community union welcomed the sale, though officials warned they will continue pushing to ensure workers’ jobs are secure.

Roy Rickhuss, Community general secretary, added: “We need to be convinced this sale is in their best interests.

“We also need to see the Government do more to help support the future of Speciality Steels and create an environment in which the whole UK steel industry can survive and grow.”

Earlier this week, Tata confirmed talks are continuing over the British Steel Pension Scheme.

The pot has long been viewed as a potential barrier for buyers of Tata’s UK businesses and the company was previously forced to deny union claims it was looking to shut the fund to sidestep a £60m payment.

Greybull has since renamed Long Products, which employs hundreds across the North-East, and includes the Teesside Beam Mill, near Redcar, as British Steel.

It has already secured work on London skyscrapers and Scunthorpe United’s new football stadium.