A STEEL company employing hundreds of North-East workers is seeking to offload two divisions in fresh sell-off plans, it has been claimed.

Industry reports say Tata Steel is looking to seal deals with bidders for its speciality steels and pipeline tube operations in the coming days.

The units include the Hartlepool pipe mills, which provide work for about 600 staff and support offshore energy projects.

Sources say KPMG, which has been overseeing the sale process of Tata’s loss-making UK business, has been asked to contact potentially interested parties.

However, a Tata spokesman refused to confirm if bosses were close to any agreement, saying the company remains focused on finalising its departure from the UK.

The Indian steelmaker has been ravaged by the low steel price, increased Chinese imports and crippling energy and business rates, and previously sold its Long Products division to investor Greybull Capital for £1.

The spokesman added: “The UK sale process continues and Tata Steel remains committed to being a responsible seller.”

The rebuttal comes after company bosses were accused of plotting a U-turn.

Reports had claimed the business was looking to revive its flagship steelworks in Port Talbot, Wales, after the Government offered a multi-million pound loan to keep the organisation in Britain.

However, the spokesman told The Northern Echo: “Tata has consistently stated it is committed to running a thorough and urgent sale process for its UK business.

“That process, supported by specialist advisors and the Governments of the UK and Wales, has involved approaches to around 200 potential investors across the world.

“As a responsible seller, Tata is engaged with a range of stakeholders, including the UK Government, to give the best chances of future sustainability for the UK business, whoever the future owner of the business might be.”

Tata’s former Long Products division is now known as British Steel after Greybull revamped its branding.

The operation employs nearly 900 people across the North-East and York, and includes the Teesside Beam Mill, at Lackenby, near Redcar, a special profiles factory, in Skinningrove, east Cleveland, and a smaller Darlington steel finishing base.

Long Products makes a variety of heavy industrial steelwork, such as railway lines and goods for the construction industry.

Greybull officials previously said the business has already turned a profit, adding they will provide a £400m package to fund day-to-day work and deliver long-term sustainability.