THE North-East’s manufacturing sector could subside unless the Government backs proposals to drag the region from its steelmaking woes, an MP has warned.

Anna Turley has reiterated calls for the Materials Processing Institute (MPI), near Middlesbrough, to join the Catapult programme.

She said the MPI is unrivalled across Europe, adding its stature as a research and development centre could encourage industry investment.

The North-East’s steel sector was last year rocked by the liquidation of Redcar-based SSI UK, which cost thousands of jobs, and doubts remain over Tata Steel’s remaining UK plants, which include the Hartlepool pipe mills that employ 600 people.

However, Redcar MP Ms Turley said giving the MPI Catapult status would help promote research and development as a key tool in making British businesses become world-beaters.

The North-East already has Catapult hubs - Government-backed centres of excellence – which focus on innovation in the digital, satellite and high-value manufacturing sectors.

To maintain those efforts, Ms Turley has lobbied ministers to back the MPI, which launched a commercial steelmaking operation earlier this year to meet customers’ requirements for smaller and unique orders.

Speaking in a Westminster steel debate, Ms Turley said: “We may never be able to forge steel again without our blast furnace (but) there is a great opportunity on Teesside to lead the way in metal re-manufacturing, refurbishment and recycling.

“I urge the Government to give a high priority to the benefit of the Catapult at the MPI.

“The MPI pilot-scale electric arc furnace is the only example of its kind in the UK and offers innovation, development and future opportunities in the adoption of electric arc furnace technology.

“Support for a materials Catapult on Teesside will give British steelmaking the cutting-edge in research and development, encouraging greater investment and resilience for the industry.”

Ms Turley also welcomed news of potential buyers for Tata’s remaining UK plants.

The Indian firm is looking to cut its losses amid lower steel prices, greater imports and higher energy taxes.

The company has already offloaded its Long Products division, which employs hundreds at the Teesside Beam Mill, near Redcar, and a special profiles factory, at Skinningrove, east Cleveland, to investor Greybull Capital for £1.

However, Ms Turley said it was extremely frustrating to see the Government offering millions of pounds to support a buyer’s bid for Tata’s remaining assets, saying calls for similar help with SSI fell on deaf ears.

She added: “I’m glad the Government seems to have learnt its lesson, albeit at a terrible cost to Teesside, and anger is still felt in Redcar that nothing was done to save steelmaking.

“However, I don’t want to keep looking back; we must get back on our feet and we are doing that.”

Tom Blenkinsop, Middlesbrough South and east Cleveland MP, who is chairman of the All-Party Parliamentary Group for Steel, called the Westminster steel meeting.

Mr Blenkinsop, who has also backed calls for the MPI to attain Catapult status, said the interest in Tata’s factories proves the steel sector is not finished.

He added: “The British steel industry has a future; it is a world-beater.

“International market conditions are changing and, as world demand increases and Chinese steel sites are closed due to international pressure, we are well placed to capitalise, but only if we rally hard behind British steel.”