Hopes are fading that Thamesteel will ever reopen.

Phones are no longer in use, the gas contract has not been renewed and the Community Union says it understands asset-strippers Hilco UK have been in to value equipment.

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

Al-Tuwairqi Group (ATG), which was in charge when it shut, took it back over in June.

Its future has been complicated by a dispute between site owner Peel Holdings and ATG concerning ownership of assets.

Community’s campaign manager Ryan Slaughter said they believe machinery will start being sold off.

“Our concern is that they are clearly trying to clear the site in preparation for when they eventually strip it out,” he said.

“Every day and every bit of kit and machinery they get off site is another nail in the coffin of it ever reopening.”

MP Gordon Henderson said because of the ongoing legal dispute no fixed assets can be sold, but ATG is legally entitled to sell non-fixed assets as the plant owners. Although he is continuing talks with relevant parties to try to reach an agreement, he said he would be surprised if it ever reopened now.

“No more money is being put into that plant,” he said.

“I met the Department for Business Innovation and Skills and have asked them to look into the situation with the Environment Agency and ensure the present owners have it drawn to their attention they will be responsible for any costs relating to the decontamination of the site.

“I have come to the conclusion ATG’s sole motive is to get the legal case resolved so they can strip it out and ship it off.

“The equipment has to be run regularly and that’s what makes me increasingly pessimistic, the longer is stays closed, the higher the cost of reinstating, which means the more difficult it will be to get an investor.”

Mr Slaughter added: “From our point of view we are still fighting – we are going to fight to the bitter end.

“We are also going to fight for job creation on the Island.”

A spokesman for Hilco UK declined to comment.