Fears for British Steel as it’s bought by Turkish military pension fund

THE long-term future of British Steel was called into question last night after the Turkish military’s pension fund was chosen as a buyer for the ailing firm.

Industry sources and MPs said British Steel could struggle to keep going if the fund, Oyak, runs the business in largely the same way its previous owner did – as it is feared it might.

Former owners Greybull Capital, a private equity firm, bought British Steel in 2016 for £1 and faced criticism over its role in the operations collapse.

The Government takes a keen interest in British Steel’s survival because the company provides materials to build warships and rail lines. It is understood officials chose Oyak because its plans would safeguard most of its 4,000 jobs and another 20,000 in its supply chain.

Oyak is set to purchase the firm for £70 million. It also promised to invest £900 million and double production. Insiders said Oyak would keep all of British Steel’s blast furnaces open.

But security experts said safeguards were necessary to make sure steel supplies were not put at risk. Dr Andrew Foxall, of the Henry Jackson Society think-tank, said: ‘A disruption to our supply could leave the UK without the fundamental building blocks of modern industry.

‘The Government needs to look at various options, including a permanent seat on the board for a national security adviser.’

Business Secretary Andrea Leadsom described the deal as a ‘positive step forward in securing the future of British Steel’.

Lib Dem MP Sir Vince Cable said: ‘It is amazing that someone thinks this is a secure long-term investment but good luck to them.

‘It’s better than some dodgy private equity operation asset-stripping them.’