Service centre to produce forklift truck parts
British SteelA £26m service centre supplying the forklift truck industry has opened.
British Steel's new manufacturing hub has been built at its existing Skinningrove site on Teesside which currently employs about 300 people.
It features machinery including lathes and automated bandsaws, as well as a new warehousing system.
While it will not lead to further jobs at the current time, the company said it would enable it "to explore growth opportunities across the globe".
The investment is part of British Steel's Special Profile businesses at Skinningrove, specialising in manufacturing parts for earth moving, forklift, shipbuilding, and mining markets.
Richard Napier, from British Steel, said: "Teesside has a rich industrial heritage and we're excited to be investing in our future.
"This is the largest single investment in our Special Profiles business for more than 30 years."
He added that the investment had already had "extremely positive feedback" from current customers and potential new ones.
Analysis - Ian Reeve, BBC Business Correspondent in the North East & Cumbria
The opening of British Steel's new facility at Skinningrove is a welcome piece of news, contrary to stories that have recently attached themselves to the Chinese-owned company.
Last week it was at the centre of speculation that it had backed out of a plan to build an electric arc furnace on Teesside.
The scheme would have created 250 jobs.
It's thought the company has opted to build two of the furnaces - a greener way of making steel - in Scunthorpe, after its traditional blast furnaces are shut down.
British Steel is also negotiating with the government over a payment of up to £600m that would ensure it continues to make steel in the UK.
Some commentators have posited the idea that the company could walk away from its operations if the cash is not forthcoming.
The Skinningrove investment then is a different story.
Making an apparent commitment to a site, that traces its history back to 1874 and the Loftus Iron Company, as a well as a commitment to a part of the north-east of England that is not over-burdened with job opportunities.
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