A NEWPORT steel plant is at the centre of a high court battle, believed to be worth £40 million.

Mir Steel UK Ltd took over the Corporation Road site in 2007 when Alphasteel went into administration.

But a company called Lictor Anstalt has lodged a claim with the Chancery Division of the High Court in London claiming it owns the plant’s hot strip mill and agreed to let Alphasteel use it when it owned the site in 2000.

An agreement dated April 3 sent fromAlphasteel to Lictor says that at no time could Alphasteel sell or purport to sell the equipment or sell the site if it would involve the sale of the equipment, the claim says.

Lictor also claims Libala Limited – a company involved in the purchase of Alphasteel – knew Lictor owned the hot strip mill but decided to press ahead with the sale of business and assets of Alphasteel despite not doing a deal to buy the rights to the mill.

Aletter dated April 2008 and submitted as part of the claim states Libala agreed to purchase the site for £60 million if it included the strip mill, or £50 million without it – which Lictor says proves the company was aware of its ownership.

Lictor claims Mir Steel has wrongfully converted the equipment to its own use by not allowing the firm to remove it from the site.

The firm is now seeking damages from Mir Steel and Libala claiming they caused Alphasteel to breach its contract with them.

Lictor also claim the companies have injured its rights as owner of the strip mill.

Mir Steel UK declined to comment when contacted by the Argus.