A DEAL to rescue British Steel safeguarding hundreds of North-East jobs could be secured next month.

In August, it was revealed that Ataer Holding, a steelmaking subsidiary of the Turkish military pension fund, entered exclusivity talks to rescue Britain's second largest steel producer, which collapsed into liquidation in May.

The firm employs thousands of people across the country, including 700 in the North-East at sites in Lackenby and Skinningrove, and the company is also indirectly responsible for 20,000 workers in the supply chain and produces around 2.5 million tonnes of steel a year.

It is understood Ataer are planning to be long term investors looking and are looking at a generational business, not short-term return.

Trade unions have also been invited to Turkey to visit other sites that Ataer have turned around.

Business Secretary Andrea Leadsom also confirmed the issue of the Turkish military incursion in northern Syria and any impact of the British government halting arms sales to Turkey would not impact on the rescue deal and was a separate issue.

Redcar MP Anna Turley said: “The government and the Official Receiver continue to work at pace and exclusive talks with Ataer are progressing well. Confidence for a successful agreement remains high and the intention is for this to be confirmed in November, subject to all approvals being reached.

“There has been some media coverage suggesting that a Chinese company is trying to re-enter talks. Whilst the Official Receiver is in exclusivity with Ataer, the government continue to talk to anyone with interest.

“Ataer are speaking to all relevant parties and are continuing close engagement with special managers EY and the government. They have also invited the trade unions to Turkey to visit other sites that Ataer have turned around. It is reassuring to see Ataer’s credentials as long term investors looking at a generational business and not just short-term return.

“I raised the issue of the Turkish military incursion in northern Syria and any impact of the British government halting arms sales to Turkey. The Minister made clear that this is a separate issue around an economic transaction and a long-term investment commitment.

“Once again, I want to thank the workforce for their fantastic efforts to support this process and improve the chances of a successful deal. The company continues to trade as normal with full support from suppliers and customers.”

Tees Valley Mayor Ben Houchen added: “This morning I had another constructive call with the Secretary of State for Business and the British Steel Support Group. Exclusive talks with Ataer are continuing and progressing well and I remain confident that reaching a deal by November remains achievable.

"While the Official Receiver remains in exclusive talks with Ataer, it is only right that the Government talks with other global steel companies who are interested in buying British Steel.

“As these Government talks continue my priority, as it has been throughout this process, is for a buyer to come forward for the whole of British Steel. As I’ve always said, If this cannot be achieved then Teesside jobs must be protected and the company’s profitable plants at Lackenby and Skinningrove saved.

“The company is still protected by a Treasury-backed indemnity, there has been no job losses, workers are still being paid on time and in full and the company’s orderbook remains strong.”

Earlier this year, the Government agreed to provide financial support potentially worth hundreds of millions of pounds, paving the way for a rescue deal.