MORE than eight million tonnes of steel have been produced at Redcar since SSI famously saved the Teesside plant from mothballing and relit the blast furnaces to international acclaim in April 2012.

It was a rescue of huge importance to the regional economy, and was rightly celebrated, but it is no secret that it has been an extremely challenging three years.

With global steel prices remaining disappointingly low, the revived plant is yet to make a profit, has struggled to pay its bills, and has only been kept afloat by cash injections from its Thai owner.

In that context, today’s completion of a £25m upgrade to the neighbouring BOC site at Redcar, and the launch of a 15-year deal with SSI, is a cause of significant reassurance about the future.

Iron and steel cannot be made without large volumes of oxygen and BOC’s agreement to keep Redcar’s blast furnaces breathing for the next 15 years is a vote of confidence about the long-term sustainability of SSI’s massive investment.

Following on from a seven-year agreement between SSI and Teesport operator PD Ports, the message to the world has become much clearer: the new era in Teesside steel production is not a flash in the pan but it is here for the long-haul.

The global economic challenges remain and nothing can be taken for granted. But SSI bosses have demonstrated their belief in what can be achieved and, with more solid partnerships now in place, there is greater room for optimism.

After years of lurching from one crisis to another, Teesside’s most famous industry desperately needs a period of stability and today’s developments are a giant step in the right direction.