SWINGEING public-sector cuts in the autumn threatened to send the region back into recession, but the year ended on an optimistic note as the deal to reopen the mothballed Teesside Cast Products (TCP) plant edged closer to completion.

Thai firm Sahaviriya Steel Industries (SSI) is poised to buy Tata Steel’s facility at Redcar, east Cleveland, which was mothballed in February.

If that agreement can be completed, it would represent a remarkable turnaround in the fortunes of the plant.

Bringing steelmaking back to the town could also symbolise a resurgent North-East industrial sector, which has steadfastly refused to buckle during the recession.

With the Government scaling down the public sector, the onus was on private firms to take on more workers.

The Comprehensive Spending Review left many publicsector employees facing a grim 2011, with large-scale redundancies to add to the North-East jobless total, which is increasing at the highest rate in the UK.

Nevertheless, most North- East firms said they expect to increase their workforce.

In July, PD Ports revealed plans for a £150m expansion of Teesport, which could generate 250 jobs. TAG Energy Solutions’ project to construct a £20m wind turbine plant on the banks of the River Tees will create about 400 jobs, while more than 1,000 workers across the region are needed to build a gas and oil platform on Tyneside.

Export growth in emerging markets such as the Far East proved particularly important, helping the likes of tank track maker Astrum, the biggest employer in Weardale, County Durham, to go from strength to strength.

The offshore sector proved extremely resilient as investment from Brazil, Russia, India and China ensured healthy order books.

Closer to home, Darlington engineering company Amec secured a £60m order for work on a gas storage facility, and the expertise of CTC Marine and JDR Cables helped in the construction of the Wave Hub tidal power project off the Cornish coast.

The second half of the year was also a period of frustration.

Durham Tees Valley Airport continued to operate at a loss, which prompted its owners to impose a controversial £6 facility fee.

A proposed £7.5bn scheme for Hitachi to bring train building to Newton Aycliffe, County Durham – which could create 800 jobs directly and 7,000 more in the supply chain – was put on ice, sparking fears the Government may scale down plans or award the contract elsewhere.

The winding down of One North East and Yorkshire Forward left a gaping hole in the region’s inward investment infrastructure.

Tees Valley Unlimited stepped forward to be given the green light to manage one of the newly formed Local Enterprise Partnerships (LEPs), which will seek to generate jobs, while operating vastly reduced budgets.

The LEPs’ first task is to oversee bids for the £1.4bn Regional Growth Fund.

If there is any justice, then the North-East will secure a significant amount of the money on offer, but it will be innovation and hard graft rather than Government handouts that will determine the region’s success this year.