Bosses at the Corus rail-making plant in Workington, Cumbria, have promised to consider proposals to save jobs. It was announced in February that 250 workers would be made redundant when production ends in July 2006.
But now bosses have pledged to consider other uses for the site, after talks with the Community Union, formerly the Iron and Steel Trades Confederation.
A union spokesman said the management had also agreed to a further meeting before Christmas.
Bosses were also asked to consider that there could be new demand for steel rail now that London has been granted the 2012 Olympics.
Scaled-down
In February, steel giant Corus announced production was being switched from the Workington plant to Scunthorpe with the loss of 250 Cumbrian jobs.
A taskforce was set up to discuss another use for the Workington site.
Union leaders are hoping Monday's meeting will persuade management to keep specialist crane and tram rail production at the site.
A spokesman for the Community Union said: "The task force was set up to look at other ways of using the Corus plant.
"We were wondering if we could carry on with a scaled down operation and carry on producing obscure rails that people can't get anywhere else."
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