A deal to sell the Teesside Corus steel plant which was mothballed with the loss of more than 1,000 jobs is being discussed.
Teesside Cast Products was partially mothballed in February when a consortium pulled out of a deal.
Thai steel company SSI has now signed a memorandum of understanding to buy the Redcar site from Corus.
The news was welcomed by union leaders and politicians.
Geoff Waterfield, site multi-union chairman, said: “This is fabulous news. We are all over-joyed.
“It’s been a difficult time for everybody and we have been bound by confidentiality arrangements. Now we can meet and start talking to SSI and Corus.”
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