SPECULATION was growing last night that a buyer has been found for a crisis-hit North-East steelworks.

The owners of the 37-acre Weardale Steel site at Wolsingham, in County Durham, said they were trying to negotiate a deal either to lease or sell the works, which went into administration last August.

Although he refused to comment on the speculation, Philip Revill, a partner with administrators Poppleton and Appleby, of Sheffield, said: "We are hopeful of having some good news soon."

Thirty-one workers are at present employed by Bonds foundry, in nearby Tow Law, on behalf of the administrators, completing outstanding orders worth £1.4m.

Bonds managing director, Mark McCarthy, who has an office at Weardale Steel, said: "Our task over the past few months has been to keep this steelworks alive on behalf of the administrators.

"We are aware that there are a number of parties interested in taking over the works. I am not prepared to say at this stage whether we are one of them."

Weardale Steel went into administration, making 85 workers redundant, shortly after a Midlands company, Eastwood Industries, bought it for £1 from Langham Industries, of Dorset. Department of Trade and Industry officials are investigating the takeover.

Langhams still owns the Wolsingham site. Managing director Chris Langham told The Northern Echo: "We have had a very long association with Weardale and we are anxious to see steel production carry on there.

"I can confirm we are in talks with a prospective buyer about either leasing or selling the steelworks."

He added: "It goes without saying we will do everything we can to ensure a fresh start for steelmaking in Weardale."

Meanwhile, a management-led consortium of former workers at Wolsingham has been pressing ahead with its bid to take over the steel plant.

Former union shop steward Kenny Lally said last night: "We are aware of all the speculation surrounding the future of the works. At the end of the day, all we want to see is steel manufacturing continuing in the dale."

Weardale Steel has built up a worldwide reputation for the specialised casting of rudder horns and steering gear for ships.

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