Turkey’s military pension fund, Oyak, has emerged as the preferred buyer for British Steel, months after the business went into administration, which is great news for the 4,000 strong Lincolnshire workforce.
The fund, through its investment arm Ataer Holdings, hopes to close the deal by the end of the year.
Commenting on the announcement Gareth Stace, UK Steel Director General, says: “Today’s announcement is enormously positive news for British Steel, its workers, and UK manufacturing as a whole. British Steel’s production facilities in Scunthorpe and elsewhere in the North East represent one third of the UK’s steel production and are a major strategic asset to our country; their loss would leave our manufacturing, construction and infrastructure capability in a considerably poorer state.
“While there is much work still to be done, today’s announcement is an important stepping stone on the way to securing a sustainable future for this cornerstone of British industry. Government support will undoubtedly be critical to taking the process forward from here, and its efforts and interventions provided to date are to be much welcomed.
“However, we must not lose sight of the longer term picture for the whole steel sector just as we see light at the end of this particular tunnel. It is important we move on from the current reactive approach, to one in which a shared, long-term strategic vision sits front and centre.
“The UK steel sector has a potentially bright future, underpinned by increasing UK and global steel demand for our products, but the Government must recognise the need to address the business environment in the UK which currently undermines our competitiveness. The steel industry is ready to invest in its future in the UK, all it requires is a partnership with the Government to help deliver a level playing field that can unlock its potential.”