William Eichler 21 February 2020

Tees Valley mayor strikes ‘landmark deal’ on former steelwork land

Tees Valley mayor strikes ‘landmark deal’ on former steelwork land image

A landmark deal has been agreed that will see the 840 acres of land owned by SSI UK transferred to the South Tees Development Corporation.

Tees Valley mayor Ben Houchen said the deal was reached after nearly three weeks of intense final negotiation with representatives of SSI.

The deal means 90 jobs will be saved at Redcar Bulk Terminal, which will continue to operate as normal.

As part of the agreement SSI will not fight the CPO. However, the CPO process will continue so that smaller parcels of land can be brought under the control of the development corporation.

The deal, which was unanimously supported at an emergency meeting of the development corporation’s board members, also includes a plan to develop an Electric Arc Furnace on the corporation’s Lackenby site within three years.

In January 2019 Mayor Houchen secured a deal with Tata to transfer 1,420 acres, more than half of the developable land at the former Redcar Steelworks, to the development corporation.

Today’s announcement means the overwhelming majority of land at the former steelworks site is now under the control of the South Tees Development Corporation.

Mayor Houchen said that the deal was ‘the beginning of a new era’.

‘I am grateful to the representatives of SSI, and everyone involved in the negotiations, who have worked so hard over recent days to be able to get this over the line,’ he said.

‘The journey to this point has not always been an easy or straight forward one, but through the hard work, dedication and commitment of all involved I am pleased we have been able to reach an agreement that works for all parties.

‘Those living across Redcar, particularly those in the shadow of the steelworks, the former steelworkers, their families and their communities, will have been waiting for this day to come. I am certain that the deal we have agreed will lead to a brighter and successful future for the area.’

Win Viriyaprapakit, CEO of SSI, commented: ‘Over the last three weeks, we have been in intensive talks with Mayor Houchen and his team to deliver a solution that works for everyone involved, and I am pleased a deal has now been done. I am also grateful for the Thai banks’ support and their good intentions for this regeneration of this region.

‘It is from these intense discussions that we saw Mayor Houchen’s integrity and character, and his commitment to the region. Based on that, SSI took the decision to secure a deal as we fully support Mayor Houchen’s vision for the site.’

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