There is fresh hope that part of Sheerness steel mill will reopen.

Labour’s parliamentary candidate Guy Nicholson says he has been at meetings with prospective buyers, a consortium from Ukraine, and members of the Community Union, which represents many of the former workers.

Talks have centred around reopening part of the site, which would include restarting production of steel with the creation of dozens of jobs.

However, MP Gordon Henderson said the comments were “speculation” and has urged Islanders to react with caution.

He said he has been in negotiations to partially re-open the business as a rolling mill and warned members of the public against getting ahead of themselves.

The mill, in Brielle Way, Sheerness, went into administration on January 25, 2012, leaving 350 people without jobs or a month’s wages.

Mr Nicholson said there are personnel already at the site overhauling the plant and more than 100 jobs could be brought back as a result.

He said: “There have been various conversations going on with Community Union representing most of the workforce. They are very excited and they stand ready and waiting and bring forward an experienced and skilled workforce.

“This is a great step forward against all the odds. There has been no support coming down from central government.

“This is exactly what we need as this will put jobs in the local economy.”

He said the talks were “well advanced and committed” and this is the “best hope yet” of the site reopening.

He said the first phase, which could be ready to start in “weeks or months”, would see the production of steel billets to begin with and could lead to the mill being brought back to “full use in due course”.

Mr Henderson said the claims and reports about a potential reopening on a steel industry news website were “speculation”, however, and said there was “no chance whatsoever” of steel actually being manufactured there again.

He said he is “increasingly optimistic” that talks he has been involved in with an unnamed firm about opening the rolling mill side of the plant only, which would not involve restarting the furnace.