INVESTORS behind Teesside iron and steelworks have revealed that a sale of the loss-making plant is being considered amid discussions about the site's financial woes. 

Online news site Steel First quotes a source at one of the Asia-based financial backers behind SSI UK who says that selling-off the famous works is a potential option as negotiations continue on existing loan arrangements. 

"We are in the process of loan rescheduling with banks, with various solutions [being discussed] including extending the repayment period, special interest rates, a capital increase, or even selling the [Teesside] plant,” they reported.

The executive said that "a lot" of feasibility studies were under way and that selling the loss-making SSI UK plant was only one of the possible solutions.

"We certainly haven’t put the plant on sale," she said. "But [putting it up for sale] is on the table." Steel First noted.

The Northern Echo has spoken to SSI and a statement is expected later today. 

Plant bosses confirmed last week they do not expect the Redcar business will make a profit this year despite earlier predictions that 2015 would be the year when it finally moved out of the red.

Last month, The Northern Echo reported that the ongoing losses made by SSI UK had prompted its financial backers to set aside extra money to cover future loans.

Thai Bank, Siam Commercial Bank and Tisco Bank helped to fund SSI's purchase of the former British Steel plant at Redcar for about £700m in 2011, and they have continued to support the business in its first three and a half years of production.

Since iron and steel making was restarted in April 2012 following a production hiatus of almost two years the plant has made more than nine million tonnes of steel slabs which have been shipped from Teesport to customers in the US, Europe and to SSI's parent company in Thailand.

Depressed global steel prices, however, have ensured the firm's Teesside operation has failed to make any profit, and regular cash injections have been made by the plant's financial backers to help keep afloat the business which employs 2,000 people in the North-East.

SSI UK unveiled a £193.5m deficit in its last annual report which prompted company auditors to voice concerns about the future of Teesside steel, but plant bosses are hopeful that 2015 will see the business reduce losses.

Reports from Thailand said the country's central bank had instructed the three banks to set aside loan loss provisions of up to 60 per cent, up from 36 per cent previously.