Costs could hit £10million on Meadowhall steel site

Outokumpu's 50-acres of land between Shepcote Lane and the M1
Outokumpu's 50-acres of land between Shepcote Lane and the M1
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A massive site in Sheffield where thousands of people once processed stainless steel could cost up to £10 million to make ready for business - the same as its asking price.

Commercial property experts believe it might cost up to £3m to remediate - clean up - 50 acres of land belonging to Outokumpu next to Meadowhall at Junction 34 of the M1.

The giant plot off Shepcote Lane was once home to more than a dozen buildings, as the aerial picture shows. They were razed in 2011 and the site cleared - although a huge clean-up is needed to remove heavy metals and acids.

The Environment Agency is expected to monitor any operation in case ground disturbance releases pollutants, potentially adding to costs. Some foundations, installed to support massive rolling machines, are believed to be up to 60ft deep.

Connecting services for industry including water, gas, electricity, drains and broadband would all have significant costs.

And Section 106 payments to Sheffield City Council might also run into millions. These are obligations that developers have to meet to benefit the community, in return for getting planning permission. IKEA, which has permission to develop the adjacent Tinsley Wire site must pay £2m.

Outokumpu had drawn up a shortlist of bidders and was expected to make a decision in the next two weeks. But it is understood negotiations are still taking place.

A property expert, who asked not to be named, said the area also suffered from congestion.

Outokumpu was unavailable for comment.