THE Thai steel company aiming to take over Teesside Cast Products (TCP) in Redcar has reported a rise in revenues and profits and has also received the nod to proceed with a share offering to raise cash to buy the plant.

Sahaviriya Steel Industries (SSI), Thailand’s top steel producer, benefited from higher prices globally to report a turnover of £980m in the 12 months to the end of December, up from £600m a year earlier and its profits rose to £50m from £20m last time.

SSI’s shareholders have also approved a rights offering and private placement of shares to raise the £320m to buy TCP, which was mothballed last year by owner Tata.

SSI, which expects the issue of 5.24 million new shares to be a sell-out, said the rights offering would open in the middle of February and it plans to complete the TCP purchase during the first quarter of this year.

The Thai company has already said it aims to have TCP’s mothballed blast furnace up and running by September.

SSI president Win Viriyaprapaikit wants to get the plant producing as quickly as possible to boost the company’s profits in the year ahead.

He said: “This year’s net profit could be a record as our acquisition will enhance our competitive edge and sustain profitability.

“We’re doing the best we can to restart the Teesside plant sooner than the September plan because the market is really tight right now.

“The faster we restart it, the faster we can benefit and create jobs there.”

Around 700 people are still employed at TCP but SSI is understood to be keen to create a further 800 jobs at the plant, which employed around 1,600 people prior to mothballing.

An SSI spokesman said the company would look to utilise the “residual skills” of former TCP workers and other expertise on Teesside.

He said: “Mr Win has always been keen to stress that the local skills in this area are what he finds most appealing about Teesside.”