More than 800 steel workers made redundant last month are hoping that plans to sell their south Wales plant will go ahead.

Three foreign companies are rumoured to be in negotiations to buy the Allied Steel and Wire (ASW) plant in Cardiff, according to the steel union the Iron and Steel Trades Confederation (ISTC).

ASW specialised in wire products

When ASW called in the receivers at the start of July, workers, unions and politicians all vowed to fight to save the future of steel production.

It is believed that potential buyers were shown around the plant, behind closed doors, on Friday.

The receivers KPMG have been reluctant to reveal any more details about any buyout, but the ISTC has told BBC Wales it understands three companies - one Spanish firm and two Italian ones - have expressed an interest.

None of the companies, nor the receivers, have confirmed that they will be bidding, but workers are hopeful that the next few weeks will bring news that some jobs could be saved.

Pension shortfall

Last week, there were calls for a public inquiry into why former directors at ASW received large payouts, despite a shortfall in the workers' pension fund.

The company's annual report showed that two former directors of ASW received substantial pension payments last year after leaving their posts.

But workers who were made redundant in July might not receive their pensions.

At the beginning of August, the receivers at the plant defended their decision to lay off the workforce, following criticism by the union which represents the staff.

The Iron and Steel Trades Confederation (ISTC) claimed that ASW could have made a profit over the next two months at least, and that the decision to close was premature.

But receivers KPMG, who were called to the troubled firm on 10 July, said that commercial reasons were to blame for the job cuts.

Harsh trading conditions were blamed for the company's downturn, with the influx of cheap European imports and increasing costs of raw materials.