Turkish army grant account set to buy British Steel

Steel prolongation during British Steel's Scunthorpe plantImage copyright
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The Official Receiver is to announce this week that an investment arm of Turkey’s armed army grant account is a elite bidder for British Steel.

Ataer Holding would afterwards be given several weeks to try to buy British Steel – a owners of a Scunthorpe works – out of insolvency.

British Steel was put into mandatory murder in May, when a Official Receiver was appointed.

Ataer owns scarcely 50% of Erdemir, Turkey’s biggest steel producer.

It is a investment car of a Turkish Armed Forces Assistance Fund (known as Oyak), a grant account for a country’s armed forces.

Some 5,000 jobs were put during risk – and 20,000 in a supply sequence – when talks pennyless down in May between a supervision and British Steel’s owner, Greybull.

British Steel has about 5,000 employees. There are 3,000 during Scunthorpe, with another 800 on Teesside and in north-eastern England.

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The association was eliminated to a Official Receiver since British Steel, a shareholders and a supervision were not means to, or would not, support a business.

The Financial Times reported that Oyak is chaired by Mehmet Tas, a former army general, and a annual ubiquitous assembly in May was attended by Turkey’s counterclaim apportion and a conduct of a country’s armed forces. 

It already has interests in cement, agriculture, mining and energy, as good as a corner try with French carmaker Renault and revenues of $9.8bn (£8.1bn) final year.

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The paper pronounced Ataer, determined by Oyak in 2005, skeleton to embark on a spate of tellurian steel acquisitions and considers shopping British Steel a “bold” initial step that would be a vigilance of intent.

Unite partner ubiquitous secretary Steve Turner pronounced a kinship was assembly with a director on Thursday and that reports of a customer were speculation.

“Unite understands from prior scheduled meetings that there are 3 critical bidders who are meddlesome in shopping British Steel as a going concern.

“With regards to a intensity bid from a Turkish troops grant fund. While we acquire it as a critical proposition, Unite will be examination this closely and vocalization with a Turkish sister unions given Turkey’s record of hang-up alongside reported antithesis to eccentric trade kinship organization in a Turkish steel plants.”

Prof Barbara Shollock, conduct of engineering during King’s College London, told Radio 5 live’s Wake Up to Money that fasten a Scunthorpe steelmaker with one in Turkey competence make blurb sense.

“The British steel attention is rarely regarded, a products that they make are high value and high quality… Perhaps fasten in with a stronger European participation [the Turkish fund] competence feel that they are consolidating their marketplace and broadening their opportunities.”

She pronounced it was a “challenging situation”.

“[Steel] is what we call a substructure attention and that means that it is one of a core producers of materials that feed into other production and pivotal things like rail, automotive, construction even, so it is really critical that we have clever foundations.”

State-owned Network Rail – that buys 100,000 tonnes of rails from British Steel any year – has pronounced it wants to take over a British Steel multiplication obliged for a welding, finishing and storing of rails for a UK’s sight network, nonetheless it has pronounced it would cite a bidder for a whole association to be found.