TATA Steel is to sell two of its Hartlepool pipe mills, but will retain the third, the board of the Indian-based steelmaker announced tonight.

The 84 and 42-inch mills will be put on the market, and the 20 inch mill be kept by Tata, which has now entered into discussions with strategic players in the steel industry to explore the feasibility of collaborations.

The talks are at a preliminary stage and Tata said there can be no certainty of a transaction.

The Community union said the move continued uncertainty for thousands of steelworkers and their families.

Tata said there had been seven expressions of interest in buying its business after it announced in March it was selling its loss making UK assets.

The bids have been fully considered and reviewed in the light of "uncertainties" caused by Brexit.

The board, meeting in Mumbai, said it had decided to look at "alternative and more sustainable" solutions.

Discussions have started with companies including German firm thyssenkrupp to explore a potential joint venture.

Koushik Chatterjee, Tata's group executive director said: "We have initiated conversations for a strategic collaboration for our European business. A potential strategic combination of strip products businesses offers the best prospects to create a premium, world-class strip steel business with the scale and scope of capabilities to compete successfully on the global stage.

"It is too early to give any assurances about the success of these talks.

"Such success, especially the inclusion of the UK business in the potential joint venture, would depend on several issues including finding a suitable outcome for the British Steel Pension Scheme, successful discussions with the UK trade unions and the delivery of policy initiatives and other support from the Governments of the UK and Wales.

"These are necessary for realising a sustainable business in the UK.

"The management team and the employees of the company are also continuing to improve the underlying performance of our European business which is very encouraging.

"We continue to be actively engaged with both the UK and the Welsh Governments, the trade unions and the Pension Trustees."

Mr Chatterjee said Tata will begin separate processes for the potential sale of the South Yorkshire-based Speciality Steels business and the Hartlepool pipe mills - other than the 20-inch Tube Mill.

Both of these operations are largely independent of the strip products supply chain.

Tata has already received interest from several bidders for Speciality Steels and the pipe mills.