TEESSIDE steel bosses have welcomed a deal that could help control raw materials costs and boost profits.
Commodity firm Trafigura has agreed a deal with Vanomet, a leading steel and raw materials trader, to supply iron ore and coking coal to the Redcar plant of Thai steel firm SSI.
Trafigura, long established in the iron ore and coking coal business, did not reveal how much the deal was worth, but added it would work with Vanomet as a partner on other deals to supply the steel industry.
The Redcar plant has struggled to show sustained profit since it restarted iron and steelmaking in April 2012.
Switzerland-based Vanomet took a stake in the Teesside business more than two years.
A spokesman for SSI UK said last night: "SSI and Vanomet have a long standing working relationship and this announcement is welcomed as it brings together a great deal of experience and expertise.
"This will be reflected in the additional procurement opportunities it provides for the SSI UK business."
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