A US billionaire is expected to visit the region in days as he bids to take control of North-East steel mills.

Gary Klesch will come to the region as talks continue over a deal for Tata Steel’s European long products division, The Northern Echo understands.

The loss-making business, which employs about 750 North-East workers, includes Teesside Beam Mill, at Lackenby, near Redcar, which made sections for the New York’s new World Trade Center, as well as sites in Darlington and Newcastle.

However, Tom Blenkinsop, Labour MP for Middlesbrough South and east Cleveland, and union officials said they will not speak to Mr Klesch, and have instead called for other options to rival his Klesch Group’s interest.

They have also urged Tata bosses to carry out a thorough consultation process with staff and give assurances on workers’ futures, after previously claiming they hadn’t been properly told of the sale.

The visit plans were confirmed after Tata revealed its results for the first-half of its financial year to September 30, which highlighted worries over the impact of rising imports.

Dr Karl Köhler, Tata Steel’s European managing director and chief executive, said talks were ongoing with Swiss-based Mr Klesch, adding its due diligence process expected to run into next year.

He said the steel firm is continuing its focus on its South Wales strip products business, which supports the automotive sector.

He added: “A successful sale is the intended outcome but it is too early to give any commitments on that or the implications.

“We stand by the European business and have done so during the most challenging times in terms of the economic environment.

“We have started the consultation process, and it is part of this, and good custom, that the unions check the position but also check out alternatives that they might have found.

“That happens in any restricting measure; it’s normal and we are open to that.

“This is not what you could call a seller’s market and we have an agreement for the time being with Klesch.”

It is believed Mr Klesch, who specialises in buying troubled companies, visited Tata’s 4,000-job Scunthorpe site earlier this week.

Speaking about a visit to the North-East, a Tata Steel spokesman told The Northern Echo: “Arrangements are being made for Mr Klesch to visit long products sites during the due diligence process.”

However, Mr Blenkinsop played down any appearance by the former Ohio steel mill electrician, whose company last week ended negotiations to take over the Murco refinery, in Milford Haven, Pembrokeshire, leaving about 400 workers with uncertainty.

The chairman of the all-party Parliamentary group for the steel and metal industries, said: “I’m hoping Tata keep to their promises on consultations with the workforce.

“A meeting with Mr Klesch is irrelevant because the discussions need to be about the other options available.

“Just because Mr Klesch is visiting doesn’t mean necessarily mean he’s going to buy it, as shown at Milford Haven.

“Like any relationship, you can only take people by their word, but if Tata doesn’t keep that, then it faces problems.”

A spokesman for The National Trade Union Steel Co-ordinating Committee, added: “Our focus is trying to get the consultation that did not take place before they made the announcement.

“We are not expected to meet Mr Klesch, and looking at all the other options to this sale.”

Tata’s Hartlepool site and its Teesside Technology Centre, in Middlesbrough, are not part of the proposed sale.