The Turkish Armed Forces Assistance Fund, also known as Oyak is all set to buy British Steel this year. The latter, facing compulsory liquidation employs over 5000 people. Its insolvency has put at risk the 3000 people who work at Scunthorpe Steel Works and another 800 people on Teesside—both owned by British Steel. Another 20,000 people in the supply chain are affected by the state of affairs.
The collapse happened after talks between the owner of British steel, Greybull and the government failed, leading to a parliamentary enquiry. After the talks failed, the enterprise was transferred to the Official Receiver as the government and the company declined to support the business. The Official Receiver has informed that it has received many bids for the company, but is considering Ataer, the investment arm of Oyak as its preferred buyer.
It further added that after discussions with several potential purchasers, they are happy to have received an acceptable offer from Oyak. They said that they are now focusing on finalizing the sale. Trade association UK steel welcomed the move and the general secretary of the body Gareth Stace said that since the company contributes to one third of the country’s steel production, they are an important asset of the country, and their loss would leave the country’s construction, infrastructure and manufacturing abilities in a poor condition.
Andrea Leadsom, The Business Secretary, hailed the move as a crucial step to secure the future of the company. She said that the country has a proud history of steel manufacturing and they are committed to a sustainable future for the same. Steelworkers’ Union Community hailed the deal as very encouraging and an important milestone. Ataer owned businesses, considered the third-largest producer of steel in Europe, produce about a quarter of Turkey’s steel.