Last week Tata Steel sold its steel production facilities in Teesside to Sahaviriya Steel Industries Public Company Limited (“SSI”), Thailand’s largest steel producer, for £300m (US$469m).

UKTI and BIS were instrumental in working with the companies involved to reach the deal, which has been hailed as a success by politicians and businessmen alike. The transaction is expected to be completed by the end of March 2011.

In addition to the initial £300m investment, SSI will invest a further £300m to make sure the facilities in Teesside are back into production within six months.

This is therefore the largest single Thai investment ever made in the UK in terms of cumulative initial investment value.

Included in the sale is the Redcar Blast Furnace, the Redcar and South Bank coke ovens, TCP’s power generation facilities and sister plant, and the Lackenby steelmaking and casting facilities.

Business Secretary Vince Cable said:

“This deal is very good news for workers at the Teesside plant and the region. I welcome the return of steelmaking to this historic steel site later this year. Coming just over a year after the plant was mothballed, it is a tribute to both companies involved – Tata Steel and SSI.

“Both parties have worked hard since August to reach a successful outcome on what has been a complex negotiation. This is a significant inward investment by SSI which will help to sustain the 700 jobs at the plant and create new ones at the site and the wider local economy.”

Mr Win Viriyaprapaikit, President of SSI, said:

“The British Embassy and His Excellency Mr. Asif Ahmad, the British Ambassador to Thailand & Laos, have been instrumental in making this acquisition a reality. The Embassy's unfailing support and valuable advice had helped to guide us to the right direction, the right people, and the right answers.

“The Embassy's role brightly illustrates the positive investment climate in UK and I am confident we can expect more and more trade and investment relations between UK and Thailand in the years to come."