It was announced in January the Samsung plant was to close

In January, the South Korean company announced it was closing its plant at Wynyard, near Billingham, with the loss of 420 jobs.

When the company came to the region in 1995, it was given a �10.5m grant.

The Department of Trade and Industry has confirmed it is pursuing a claim against the company.

Negotiations are still ongoing between Samsung and the DTI to decide how much it will be asked to repay.

A DTI spokesman said: "We are pursuing a claim. As to how much, that is something that is still under discussion."

Low worldwide prices

Samsung says it will pay back any grant money it is agreed should be repaid.

A Samsung spokesperson said: "Basically, since the announcement of closure in January, Samsung has been in discussion with the DTI and One NorthEast and the consultation is still going on.

"Samsung has said that any grant money that is deemed due to be repaid will be repaid by Samsung."

When it made the announcement it was to close the Teesside plant, the company blamed low worldwide prices for making it "impossible" for the plant to compete with the cost of equivalent products manufactured in Eastern Europe and the Far East.

Staff have been given help to find other jobs, which has included a group of public sector agencies coming together to set up the Samsung Project Group.

The factory is currently being wound down and the plant and site will be given to new owners in January.

In February, it was announced the site had been sold to Wynyard Limited, led by managing director Chris Musgrave, who heads the Billingham-based JCM group.