A LEGAL team from a city that once led the world in steelmaking played a major role in concluding the complex deal that saved Teesside Cast Products.

Experts from the Sheffield office of DLA Piper represented Tata Steel last week as it handed over the keys to Sahaviriya Steel Industries (SSI), which was advised during the £291m deal by international law firms Salans and Pinsent Masons.

The sale of the site to Thailand’s largest steelmaker secures 700 jobs in the North-East, and the recruitment of 800 more workers has begun.

The acquisition presented the lawyers with considerable challenges from a corporate, real estate, employment and projects point of view.

The asset and business separation exercise was complex following the mothballing that had taken place at the site a year earlier. Securing multiple titles across a site covering 2,000 acres added to this complexity.

Assets included in the sale were the Redcar Blast Furnace, the Redcar and South Bank coke ovens and Teesside Cast Product’s power generation facilities.

Ensuring access to the purpose-built tracks for the rolling stock that connect the Teesside Cast Products site with Teesport was also an essential factor in the deal’s success.

Neil Slater, partner in DLA Piper’s real estate team, said: “The sale of this site is exceptional news for Teesside, not only saving hundreds of jobs but bringing potential for ongoing employment opportunities and greater contributions to the local economy. Our Sheffield office has a particular affiliation with the steel industry, so the resumption of steelmaking to this historic site makes it all the more rewarding.”

Working closely with third parties including the Crown, Network Rail and PD Teesport Ltd, the legal teams advised on the transfer of freeholds and the grant of long and shortterm leases and ownership of the gas, electricity and water services.

In particular, there were a number of complex arrangements to deal with environmental liabilities and operational continuity.

The team had to provide innovative solutions to land condition, permit and compliance issues.

Salans’ team was led by corporate partner Zarko Iankov. “This has been a significant deal for everyone on the team, and we were very aware of the high stakes both for the client and for the wider community in the North- East,” he said.