THE future ASW's Sheerness steel mill was still in doubt today after the company's business in Wales was bought by a Spanish firm.

Administrators announced today that they had sold most machinery and plant at ASW's Cardiff site to Celsa.

It is understood machinery at the Sheerness site has also been sold. But while the administrators believe Celsa will restart production at Cardiff, the future of Sheerness was today still unclear.

Michael Leahy, general secretary of the Iron and Steel Trades Confederation, said the deal was a vote of confidence for steel production in the UK.

He hoped that it would encourage potential buyers of the Sheerness business to restart production there.

Sheerness closed last year with the loss of more than 300 jobs.