SHEERNESS steel mill could be back in production by mid-March with about 140 workers employed there.

Peter Holsten, branch secretary of the Iron and Steel Trades Confederation, said he understood that Thamesteel aimed to start steel-making operations in about six weeks' time.

He believed that about 140 new or re-employed staff would be making metal billets that would be exported to Saudi Arabia to make reinforcing bars.

That compares to a workforce of about 320 last July when Allied Steel and Wire Holdings, which also owned a steel plant in Cardiff, went into receivership.

The Sheerness mill's general manager, Warren Hewitt, declined to comment until Thamesteel, the company which has bought the remaining ASW assets at Brielle Way, Sheerness, issued a statement.

But Mr Holsten, whose union members were among the staff employed by ASW, said: " I know that they intend to advertise in local and national newspapers for people to apply for work or at least to re-apply for their jobs."

He added: "Obviously a lot of people living close to the steel mill have not been very happy with it, but this will retain jobs and that is a good thing."

Thamesteel is owned by the Saudi Arabian group, Al Tuwairqi, whose subsidiary Ittifaq was involved in talks to buy the Sheerness plant for several weeks before the sale was completed on January 21.

Most of ASW's freehold property in Cardiff was bought by the Spanish steel producers Celsa in a deal completed early this month. So, too, was most plant and machinery located there and also some machinery from Sheerness.

A Medway Ports Authority spokeswoman confirmed that the Brielle Way land is still owned by MPA. A 125-year lease, which still has 98 years to run, is being transferred to Thamesteel.

* Pension rights' campaigners fighting for compensation for Sheppey steel workers travel to London on Saturday (FEB 1) to stage another day of action.

The Pensions Fund Action Group will march down Whitehall and stage a demonstration. A petition will be handed in at 10 Downing Street and then the marchers will go to Whitehall Place for speeches.