The former owners of Sheerness steel mill owe Swale council £1.25 million.

Thamesteel, part of Al Tuwairqi Holding Company, went into administration in January 2012, since which time the Saudi Arabian firm has not paid any business rates for the Brielle Way site.

Last month, we reported on the end of a legal wrangle between the former occupants and landowner, Peel Land and Property.

A settlement was reached whereby Al Tuwairqi will vacate the site once certain plant and equipment has been removed and sold. Money raised from the sale will be used to pay off the debt owed to the borough.

Swale director of regeneration, Pete Raine, said: “Sheerness steel went bankrupt in 2012, and since then they have not paid us any business rates.

“We took them to the High Court with a winding-up petition.

“We did that not so much to get the money, but to get them to admit they would move off the site and not block future development. Now, they have agreed to vacate the site.

“When they sell part of their assets, we will receive the first £1.25 million. The idea is someone can move onto the site and start making steel again, but I think that is unlikely.”

The mill is currently vacant and a new occupant is being sought.

Various behind-the-scenes discussions have been taking place to start rolling mill operations using steel materials imported from the docks but whether this will go ahead remains to be seen.

In November, Peel Ports, part of the same group as Peel Land and Property, announced a 20-year masterplan for the docks which could see a direct rail link to its headquarters in Liverpool.

Mr Raine said he thought the railway could definitely happen, adding: “We are the most successful borough in Kent in terms of manufacturing – we are a business-friendly borough.”