A HISTORIC day saw 150-years of Teesside steel making saved and with it the promise of a $1bn investment.

Sahaviriya Steel Industries (SSI), Thailand's largest steel producer, yesterday announced it had signed an agreement with Tata Steel UK, formerly Corus, to buy the Teesside Cast Products plant at Redcar for $469m.

Announcing the deal SSI president Win Viriyaprapaikit said the local community had made it happen.

With more than 1,000 employees having left the plant since it was mothballed a year ago the process of recruiting 800 staff, on top of the existing workforce of 700, has already begun, as well as work to restart the blast furnace, which should see steel-making resume in around six months time.

The fine details of the agreement is expected to be ironed out in the next four to five weeks.

Workers at TCP cheered as they were told the tremendous news.

Mr Viriyaprapaikit, who was inspired to pursue a deal for the plant after watching 5,000 steelworkers and supporters march through Redcar to call for the facility to be saved, said: "It is the Teesside people who have made this happen. Without them we would not be here so I would like to say thank you."

He added: "We think the people in Teesside have a very big passion for the steel industry, there is a big skilled workforce and a proven track record of producing a very top quality product."

"We are very happy we can be a part of this and we can continue for many, many more years."

Mr Viriyaprapaikit said SSI's investment would be around $1bn. As well as the $469m to buy the plant there will be $150m of capital expenditure on the facility over the next two years, as well as around $400m of working capital.

Sitting alongside Mr Viriyaprapaikit, Tata Steel Europe's chief executive Karl-Ulrich Kohler said SSI was the right choice for the plant, adding: "We are totally convinced that SSI is an ideal owner and developer of that site for the future and therefore I think it is fair to say this was the real, honest and just the right party to purchase and take over the responsibility for TCP."

He added: "I would like to place on record my admiration for the employees, the unions, the people from government and from SSI who have helped make this happen.

"By coming together in good faith we have achieved what many people thought we could not achieve - indeed, we have achieved something that a few people even doubted we were trying to achieve. I hope that today's announcement demonstrates clearly once and for all our complete sincerity throughout the last 22 months."

TCP multi-union chairman Geoff Waterfield paid tribute to everyone who had worked to secure the sale of the plant.

"We've now got to start making steel and live up to the reputation that we have," he added.

"Many people believed in this deal and we have now got to build the future of the plant for future generations.

"It's about starting that blast furnace up and making iron and making steel."

As the deal was signed in London, Corus Long Products director Jon Bolton told the good news to workers at the Redcar site.

He revealed that staff cheered after he had made the announcement.

Paying tribute to those who had fought and worked to save the future of the plant, he said: "It's almost as if the people of Teesside willed this over the line.

"This has taken two years of very hard work by Tata Steel Europe and it has finally come to fruition - it's a good day."

"There's a lot of happy faces inside," he added.

Redcar Liberal Democrat MP Ian Swales said: "The cast-iron backbone of our area is in place again. This means more jobs and a better economy - it is a huge boost for everyone locally.

"I am immensely proud that everyone involved has shown a relentless determination to reopen the plant."

Middlesbrough South and East Cleveland Labour MP, Tom Blenkinsop, a former officer for steel union Community, said: "Everyone involved with our community's battle to secure the future for steelmaking in our area must be congratulated. All those involved have pulled together to fight to save local steelmaking and, now the ink has dried on the agreement, their fight has been vindicated."

George Dunning, the Leader of Redcar & Cleveland Borough Council and a former steelworker of 30 years, said: "The announcement of this deal is one of the greatest moments I can recall for the Borough and Teesside as a whole. I am thrilled."

Business Secretary Vince Cable said: "Coming just over a year after the plant was mothballed, it is a tribute to both companies involved - Tata Steel and SSI."

Alan Clarke, One North East Chief Executive and Chairman of the Corus Response Group, said: "The sale agreement and announcement that the new owners are looking forward to resuming steelmaking in Redcar is wonderful news for everyone connected with the business and the local economy."

Middlesbrough FC manager Tony Mowbray, whose father worked at the plant, said: "It is something very close to my heart.

"Getting local people back in jobs can only be positive and hopeful it has a positive impact on the football club."