A STEEL firm has finalised the completion of a new business as it looks to strengthen operations and continue supporting hundreds of North-East jobs.

Tata Steel says its Long Products division is now a standalone wholly-owned subsidiary in its European operations.

The Northern Echo understands bosses hope the switch to Long Products Europe will help attract fresh funding from investors and support the buying of raw materials and selling of its products.

Long Products employs about 750 North-East workers and runs a special profiles plant in Skinningrove, east Cleveland, and the Teesside Beam Mill, near Redcar.

Confirmation of the move comes as US billionaire Gary Klesch continues talks with Tata over its European Long Products division.

Mr Klesch signed a memorandum of understanding last year, ahead of a proposed sell-off of all or parts of the business, which has been extended for further due diligence with the Klesch Group.

However, no date has been set for a decision on any deal, and a Tata spokesman said it was focused on the subsidiary’s potential benefits.

He said: “This brings together the existing long products businesses with its associated distribution facilities.

“It will allow the business to combine the strength of Tata Steel with a flexible and more focused operational approach.”

Bimlendra Jha will lead the business, with existing director Jon Bolton stepping down, in what some media reports have claimed is a precursor to impending job cuts at the company’s Scunthorpe plant.

However, the spokesman told The Northern Echo such claims were inaccurate.

He added: “Mr Jha has been executive director of Tata Steel group’s strategy and European supply chain.

“He will draw on his experience of running Tata’s India-based long products business.

“The current director of the business, Jon Bolton, has decided the time is now right for him to step aside and allow the new business to work towards a more sustainable future under its new leader.

“After supporting the initial launch of the stand-alone business, Jon will leave at the end of September to pursue opportunities outside Tata.”

Last month, Tata revealed it was cutting 25 jobs at its Skinningrove plant, which previously supplied steel for the £6.2bn HMS Queen Elizabeth aircraft carrier, due to market pressures.

However, it doesn’t expect to make any compulsory redundancies.

The factory, which employs about 360 staff, is led by demand, meaning numbers can vary when orders rise and fall.