The factory has been occupied for more than 100 years under various ownerships. Credit: via Tangerine Comms

Union Electric Steel factory up for sale

3 December 2025 18:45 Sally Gibson Comments (0)

The 10-acre factory site sits among a number of large-scale regeneration schemes in Gateshead, and is on the market following the steel business being placed into administration by its US owners in October.

Avison Young is handling the sale of the property on behalf of the administrators, and is inviting offers for the freehold interest in the site, which is sold with full vacant possession.

The factory itself is made up of purpose-built industrial sheds arranged in nine bays and totalling around 290,000 sq ft and has been expanded over several decades.

The area of Gateshead it is located in has been identified within the Core Strategy and Urban Core Plan as a focus for growth, which can include employment use, and mixed-use including residential.

Located at the corner of Park Lane and Felling Bypass with access to Gateshead Highway, the factory is situated on one of the key traffic thoroughfares into Newcastle and the wider North East region

Mark McKelvey, director at Avison Young, said: “This is one of the most significant redevelopment opportunities to come forward in Gateshead in recent years.

“Its scale, connectivity and proximity to major regeneration projects give it the potential to deliver real long-term value for the town and the wider region.

“The site’s flexibility means it can support a range of potential uses, and we believe it could play a pivotal role in shaping the next phase of Gateshead’s growth.

“We are already seeing strong interest from a wide range of developers, and we anticipate high demand as the site moves through the marketing process.”