MANUFACTURERS are seeking reassurances that the compulsory purchase and regeneration of the former SSI site will not affect their interests in Teesside.

More than a dozen businesses have objected to the application for a compulsory purchase order for the former steelworks site, which was made by the South Tees Development Corporation (STDC) last year.

A public inquiry is due to start on Tuesday to decide whether the order should be granted to bring the remaining 870 acres of the Redcar steelworks site into the ownership of the development company.

The application was made after talks broke down with the Thai banks which own the site.

Among the 19 objectors are British Steel, which has a nearby plant at Lackenby, Sirius Minerals, Sembcorp Limited, Redcar Bulk Terminal Ltd, Total Bolt Solutions, which has a Middlesbrough factory, and Tarmac Trading Ltd, which says its operation employing eight operatives, 15 hauliers and four contractors would cease if it goes ahead.

British Steel says the acquisition of plots around Lackenby could have a "serious adverse impact" on its continued operation.

Meanwhile Sirius Minerals, which is building a materials handling and processing facility and export quay for its York Potash Project, has sought a reassurance the development of the site will not impact on it.

Lawyers acting for the company said: "It is vital that any development in this area does not have a detrimental effect on the ability of our client to bring forward the York Potash Project."

STDC has already acquired 1,420 acres of land on the Redcar steelworks site, which closed in 2015 with the loss of thousands of jobs, and wants to secure the remaining 870 acres held by SSI in receivership.

It is hoped the regeneration of the site will create 20,000 jobs over 25 years.

Tees Valley Mayor Ben Houchen said: “I am absolutely passionate about this site and I am emotionally attached to the redevelopment and the regeneration of a site that is unique to anywhere in Europe. It will deliver 20,000 jobs over 25 years.

“My strong and passionate position is about us being able to take back control of the Redcar steelworks site. My whole drive is about jobs and businesses on Teesside and making sure that Teesside succeeds in the future.”

But an objection made on behalf of the Thai banks questions whether the acquisition is necessary to regenerate the site and described the order as "fundamentally misconceived and significantly premature".

Relations between STDC and the Thai banks has been strained, leading to the break down of talks last year. Evidence sent to the inquiry by STDC chief executive David Allison has denied claims that director Steve Gibson shouted and "threw" an agenda at a bank representative at the March meeting.