Redcar steelworks land deal talks 'break down'

Compulsory purchase proceedings have begun to bring a former Teesside steelworks back into public ownership from three Thai banks.

They have had control of the 870-acre Redcar plant since it went into liquidation in 2015 owing them money.

Talks with the South Tees Development Corporation (STDC) have "broken down" in a dispute about the land's value.

Corporation chairman and Tees Valley Mayor Ben Houchen said he would not "be held to ransom by three foreign banks".

"I'm not prepared to write blank cheques on behalf of the taxpayer," he added.

At a meeting on Friday the banks disagreed with an assessment of the land's value based on a report commissioned by the STDC, according to Mr Houchen.

He said the banks had originally agreed to abide by the report's conclusion but have now decided they will conduct their own investigation.

"Following that meeting it was clear to me that the Thai banks are not playing ball, so exercising the powers handed to us by Parliament to ensure local people are back in control of the entire site is essential," Mr Houchen said.

Tata Steel Europe sold the steelworks site to Sahaviriya Steel Industries (SSI) in 2011, retaining the adjacent 1,420 acres.

Ownership of that surrounding land was transferred to STDC in February.

The three banks have had control of the land on which the steelworks stand since SSI went into liquidation and the plant closed in October 2015.

STDC plans to attract investment and regenerate the site, creating up to 20,000 jobs over the next 20 years.