The announcement that part of Sheerness steel mill is to re-open was made by mistake.

This was revealed this afternoon by Sheppey MP Gordon Henderson.

Last month, it was reported how the Liberty House Group was to take over the former Thamesteel rolling mill, off Brielle Way.

But this was greeted with surprise at the time by site owner Peel Ports, which said no deal had been done.

This morning, Mr Henderson met Liberty's director of UK steel development, Jon Bolton, at the House of Commons.

The Tory says he was assured the company has a genuine interest in Sheerness and has spoken to industry experts about a possible move.

However, the October 14 announcement was premature and although there have been talks with Peel, there is no agreement.

Liberty later said an interim understanding was in place with Peel.

Mr Henderson says the company is looking at costs and market conditions and wants the matter resolved by Christmas.

He reiterated the firm will not be producing steel, but "rolling" imported material into products, mainly for the construction industry.

He said: "They have been down to Sheerness this week and spoken to experts about the site. There are many hurdles to overcome to achieve this."

He added his gut feeling was "60-40 against" Liberty re-opening the mill because a "lot of the economics just don't stack up".

But he added if it did happen, Liberty's timing could be good as eventual Brexit would free the government's hands when it comes to state aid to the steel industry.

"In my heart, I'd like to see Britain have a decent steel industry again," he said. "But we'll just have to wait and see."

In a statement, Mr Bolton later said: “Liberty House can confirm we recently made a firm decision to reopen the rod and bar mills at Sheerness next year.

"An interim lease between Peel Ports and Liberty has already been signed and the long-term lease details are being finalised between the respective lawyers."

Peel says it will not be commenting on the matter for the time being.