Thai firm SSI, owners of the Redcar steelworks, is to go into liquidatio.
Sources told the Press Association that the board had applied to wind up the Teesside business, with a formal announcement being made later today.
The move followed a Government has announcement of an £80 million package to support workers who have lost their jobs at the huge steel plant.
A steel summit will be held on October 16, involving steel companies, MPs, unions and governments to discuss the future of the industry
Hundreds of families in the North East are struggling to come to terms with the impending closure of the SSI steelworks plant in Redcar.
The government has decided to allow the steel plant at Redcar to fail. A tough decision to make and obviously an unpopular one.
China's economy is slowing, and the aftershocks are being felt as far afield as Redcar.