Administrators handling the affairs of a North-East steelworks last night revealed that a buyer had been found for the 140-year-old plant.

The sale of Weardale Steel to Anglo-Swedish secures skilled jobs in Weardale, County Durham, ending seven months of doubt over the future of the company at Wolsingham.

The uncertainty followed more bad news for the dale with the closure of the Blue Circle cement works at nearby Eastgate last year.

In a statement, Sheffield administrators Poppleton and Appleby said: "After what have been very difficult and, at times, uncertain circumstances we can announce that Weardale Steel has been sold as a going concern."

Philip Revill, senior partner with the company, added: "We are delighted for the steel workers who have been very supportive and kept running the company during this difficult time."

Mr Revill said he could not reveal any financial details about the buyout of the company by Anglo-Swedish, based near Newcastle's Quayside, and as predicted by The Northern Echo two weeks ago.

But he did confirm that it had bought, rather than leased, Weardale Steel, which ran into financial difficulties in October last year following a disastrous takeover by Midlands-based Eastwood Industries.

Les Graham, managing director of Anglo-Swedish, was last night unavailable to talk about his company's successful buyout of Wear-dale Steel, but the firm has already taken on 25 former steelworkers at Wolsingham.

It will also continue to trade as Weardale Steel.

He has told The Northern Echo that he is hoping to increase the number of employees "substantially" as soon as possible.

It is likely that many of Anglo Swedish's contracts, involving boiler repairs and other light engineering, will be carried out at Wolsingham.

Since the administrators moved in on October 3 last year the future of Weardale Steel, a world leader in heavy castings for ships' rudders, has been in doubt.

A Department of Trade and Industry investigation has started into the takeover of the company for just £1 by Eastwood Industries from the Dorset-based Langham group, which still owns the 30-acre site at Wolsingham.