Business Editor Andy Richardson was at the opening of BOC's £25m revamped gas plant that could help Teesside's industrial heavyweights to stay afloat.

TEESSIDE iron and steelworks could not breathe without the oxygen supplied by BOC.

Business leaders and politicians were on the gas firm's site at Redcar this morning to celebrate completion of a £25m upgrade and the start of a 15-year deal aimed at keeping the fires burning at SSI Steel.

The relationship between the two plants, which dates from when they were respectively known as the British Oxygen Company and British Steel, is more than supplier and customer.

"You cannot make iron and steel without large volumes of oxygen, it is as fundamental as that," said BOC's Steve Gledhill, who explained that SSI was the firm's biggest customer. "They are facing major challenges but we are supportive and very keen to see them thrive into the future," he told The Northern Echo.

Bosses of both companies spoke of their 'partnership,' but 'symbiotic' would perhaps be a more accurate description for the vital lifeline that links the near neighbours.

More than eight million tonnes of steel have been made in Redcar since SSI rescued the famous works from mothballing and restarted production in April 2012. The business has yet to show a profit and struggles to pay its bills, however, as the global price for steel has remained stubbornly low, while the cost of keeping the plant afloat has required regular cash injections from its Thai owner.

The BOC deal follows a seven year agreement SSI signed with Teesport operator PD Ports. The steel firm said the support of its key suppliers sent a powerful message that the region was united in its determination to safeguard the future of Teesside steel.

Cornelius Louwrens, SSI UK’s business director and chief operating officer, who is a keen amateur cyclist, explained: "I was cycling up a big hill the other day, and as I was trying to suck in more air I thought - this is a good analogy for our relationship. SSI couldn't breathe without BOC. It is that simple.

"We are going through a very tough time and they are supporting us through that, but it is difficult for all of us."

The BOC investment will safeguard the jobs of its 50 plant workers and drivers. Its significance to the industrial landscape of Teesside is huge, said gas bosses, as they hosted a tour of the site that supplies oxygen, nitrogen and argon via a 100 mile pipeline around the region's chemicals and steel businesses.

In addition, BOC's sister plant on the north bank of the Tees supplies hydrogen and steam to the area's petrochemical plants.

Discussions over the £25m project started three years ago. After 12 months of negotiation work began on an upgrade and expansion of the site's three Air Separation Units which supply oxygen, nitrogen and argon, and re-engineering the existing pipeline systems to SSI. Specialist control equipment has also been designed and built for the blast furnace.

Mr Louwrens added:"When you consider that one of the big problems the (steel) business suffered from in the past was a lack of a long term vision, simply because it didn't fit the strategy of Corus, British Steel or Tata, then this 15 year contract with a key supplier demonstrates that SSI is in this for the long term.

"You cannot overstate the fact that BOC are our partners. We are so integral to one another," he said.