THE mothballed Corus steel plant on Teesside is to be sold to Thai firm SSI.

The plant was partially closed when an international consortium suddenly walked away from a long-term contract to buy its products.

More than 1,000 workers at the Teesside Cast Products site lost their jobs and there were fears that the plant would close altogether, leading to thousands more job losses across the region.

Behind-the-scenes moves began this summer to sell the plant to SSI, with union leaders and local politicians visiting Thailand to meet company executives.

The announcement today that the factory was being sold to SSI raised hopes that many of the jobs will be saved, giving a huge boost to the North-East region, which is heavily reliant on the steel industry for employment.

Union officials warmly welcomed today's great news.

Corus said the deal was expected to create a significant number of new jobs at the plant, where 700 workers remained employed following its mothballing.

Chief executive Kirby Adams said: "We are very pleased to announce this significant progress in our long-held objective to sell the TCP assets to a strategic industry investor.

"This is the first of several steps required to reach a definitive sale agreement in the coming months which, with the anticipated co-operation of Government, employee representatives and the North-East community, should result in the restart of steel-making on Teesside in the first half of 2011."

Unite national officer Terry Pye said: "Last year this site was pronounced dead, but thanks to the intervention and determination of the workforce and their unions to find a buyer, this steel plant has been brought back to life.

"The deal secures jobs for the future and generates wealth and opportunity for the local community. This is fantastic news."

Michael Leahy, general secretary of the Community union, said: "This long overdue announcement is great news for Teesside. I must give all credit to the Tata board and to SSI for finally forging an agreement that will resume steelmaking on Teesside.

"SSI have a well-earned reputation that should reassure the community that steelmaking is at the top of their agenda. We are confident that SSI will be contacting all the stakeholders, including the unions.

"The resumption of production on Teesside will rejuvenate the local area, get people back into work and ensures a strong future for the British steel industry.

"The trade unions have worked tirelessly for a resolution to this situation, and are now looking to tie up any loose ends and bring this matter to a conclusion.

"For our members on Teesside who have survived on a knife-edge since May 2009, the sale of TCP will mark the beginning of a new and challenging era of steelmaking."