FORMER employees of a troubled North-East steelworks are pressing ahead with plans to take over the plant with the help of government agencies and a union-funded bank.

Led by former managing director Bill Cooper, a working group of 20 say they are "very hopeful" of saving the 140-year-old Weardale Steel works at Wolsingham, County Durham, after administrators moved in two months ago.

At a key meeting, to be held at the plant on Wednesday, November 27, the working group will present its business plan, aimed at continuing production of steel at Wolsingham, to the administrators Poppleton and Appleby, of Sheffield.

Present at the meeting will be a representative of a union-funded bank introduced to the former employees by their union, Amicus.

Weardale Steel, employing 85 workers, went into administration seven weeks after being taken over by a Midlands-based company, Eastwood Industries.

That takeover is now being investigated by Department of Trade and Industry (DTI) officials.

Mr Cooper said yesterday: "We are very heartened by the progress we have made so far in our efforts to re-start the works with a management-led workers' team.

"With the help of the DTI, Durham Business Link and this union-backed financial institution, we will be putting our business plan to the administrators at the works meeting next week."

Mr Cooper said the working group had recently signed a confidentiality agreement with the administrators so he could not reveal full details of their takeover package.

At present, 25 men are employed by the Bonds Foundry, at Tow Law, completing outstanding contracts at Wolsingham on behalf of the administrators.

It is expected this will ensure the Weardale Steel works stays in production until around Christmas.

"But that's not necessarily a good thing," said Mr Cooper

"This means that all the work on site will have been completed, so any new company coming in will have to start from scratch.

"I don't see the window of opportunity for our bid extending any further than Christmas."

Kenny Lally, Amicus shop steward at Wolsingham and a member of the working group, said: "We regard next week's meeting as a very positive move in our battle to save the works.

"The involvement of the union bank in discussions is a bonus."

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