RECEIVERS put in charge of the future of the Sheerness Steel Mill today signed a deal with Thamesteel Ltd.

It is thought the Sheppey-based firm will run the site for the Saudi Arabian parent company ITTIFAQ.

A deal was signed with the receivers this morning. Sheppey MP Derek Wyatt said of the sale: “This is good news.”

He hoped that the deal negotiated by KPMG, the receivers of Allied Steel & Wire Holdings, will save between 150 and 200 jobs at the site in Brielle Way.

Mr Wyatt added: “In view of the difficulties for the company workers because of redundancies and pension losses, this is better news.”

ASW, which employed more than 320 staff, went into receivership in July last year. In a deal concluded earlier this month, Celsa,the Spanish steel producers, bought most of ASW’s freehold property at its Cardiff site, the majority of plant and machinery located there and also some machinery from Sheerness.

The receivers say operations at Sheerness should resume "in the very near future".