THE man who has saved a crisis-hit North-East steelworks from the industrial scrapheap yesterday pledged a bright new dawn for the 140-year-old plant and its workers.

Businessman Les Graham, whose Tyneside company has bought Weardale Steel at Wolsingham, County Dur-ham, for an undisclosed sum, said the sky would be the limit in the quest for orders.

He promised that, with the support of the 35-strong workforce he has already taken on, his Anglo-Swedish company could help secure a vibrant future for steelmaking in the job-starved dale.

Within three years of successful trading, he said, he envisaged nearly 80 workers being employed at Weardale Steel, which went into administration last October following a disastrous takeover by Eastwood Industries.

Mr Graham, speaking at the Wolsingham plant, said he would be "very much a hands-on" managing director of the company.

He said the business would now carry out out a mixture of heavy engineering - Weardale Steel has built up a worldwide reputation in the casting of ships' steering gear - combined with lighter engineering, such as boiler repairs, done by Anglo-Swedish at its base near Newcastle's Quayside.

Mr Graham said the heavy engineering base of Weardale Steel was sound, but a lot of investment was needed to bring the company up to other engineering standards in the 20th Century.

"There is a long way to go, but if management and what is a highly skilled workforce can pull together, then I am certain we can succeed".

Mr Graham praised the help he had received from organisations such as County Durham Development Company, Wear Valley Development Agency and Wear Valley District Council.

But he was critical of Government-backed agencies, like OneNorthEast, who he claimed had "only put obstacles" in his path.

"If you want to start up or revive a business, don't go down that path," he said.

"There were many times during the past five months I have been trying to negotiate the takeover of Weardale Steel I have felt like walking away.

"But with the help I have been given here locally, and the support shown by the workers of Weardale, I have carried on.

"I am delighted to be finally standing here today," said Mr Graham.

Local MP and Government Chief Whip Hilary Armstrong, who has been in close touch with the bid to save Weardale Steel since last October, said last night: "I am delighted that what has been, and hopefully will continue to be a company established as a world leader in steelmaking, is to carry on.

"At times, this has been a painful and very difficult road to travel.

"But the outcome has been well worth the effort put in by all parties involved."

* Last night, One NorthEast board member Phil Hughes replied to Mr Graham's criticism.

He said: "I don't know if the problem here has been state aid issues, as to whether a company can be supported because of competition rules.

"But as far as I know, the business development team has worked closely with anyone who wanted to put the work back into Weardale.

"It's easy to criticise and find blame, but it's much more difficult to find solutions under the legislative framework we operate under.

"Obviously, we wish him success and hope he is able to create these jobs.

"If we can be of any help in the future I hope he will come back to us.