AN MP is calling for an inquiry into the events that led up to the disastrous takeover of a North-East steelworks last year.

The takeover of Weardale Steel in Wolsingham, County Durham, by Midlands-based Eastwood Industries led to 85 workers being made redundant and seven months of doubt about its future.

Eastwood bought the 140-year-old steelworks - a world leader in heavy castings for ships - for a mere £1 from the Dorset-based Langham group of companies, which had owned it for 19 years.

At the time Langham's chairman, John Langham, told The Northern Echo: "After a lot of negotiating we decided to sell the firm to Eastwood for what amounted to a pittance because they promised to bring much-needed new contracts to Weardale."

But only weeks after the takeover - on October 3 - the administrators were called in.

Last week, Weardale Steel was bought by Anglo-Swedish, of Newcastle, headed by Les Graham, who has already taken on 35 former steelworkers - with the prospect of taking on more.

North-West Durham MP and Government Chief Whip Hilary Armstrong said: "Weardale Steel has always had an excellent reputation for good workers and the quality of their product. I'm delighted that this will continue.

"But now that the future of the company has been secured, I will be asking the Department of Trade and Industry for an inquiry into the circumstances surrounding the previous takeover by Eastwood Industries."