A US billionaire has visited the North-East as he firms up a bid for steel mills, The Northern Echo can reveal.

Gary Klesch has toured Tata Steel’s long products division as talks continue between his Klesch Group investor firm and steel bosses.

Swiss-based Mr Klesch, who specialises in buying troubled companies, last month launched a bid for the loss-making business, which includes the Teesside Beam Mill, at Lackenby, near Redcar, and Skinningrove special profiles plant, in east Cleveland.

Tata’s regional operations employ about 750 North-East workers and also include sites in Darlington and Newcastle.

A Tata Steel spokesman said: “Gary Klesch has visited the Tata Steel long products business in the North-East as part of the due diligence process.”

Unions and MPs previously raised fears over a lack of staff consultation and potential job losses in any sale, though Mr Klesch played down such fears, adding due diligence is expected to be completed by spring next year.

His visit to the region coincided with a meeting between the UK National Trade Union Co-ordinating Committee, made up of unions Community, Unite and GMB, Tata chairman Cyrus Mistry and Dr Karl Köhler, Tata’s European managing director and chief executive, who assured union officials they haven’t ruled out alternatives.

A committee spokesman said: “We had a constructive meeting to ensure there is full and meaningful consultation between Tata and the trade unions and works councils in Europe over the potential sale.

“Tata will give serious consideration before a potential sale to alternatives put forward by the trade unions and their consultants in the interest of employees.

“We also agreed the consultation process should be concluded before a sale is completed.”

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