THE fate of hundreds of North-East steelworkers could be decided in the coming days.

The Northern Echo understands consultants probing a bid from US billionaire Gary Klesch for Tata Steel’s European long products division are close to announcing their findings.

The loss-making steel business employs about 750 North-East workers, and includes the Teesside Beam Mill, at Lackenby, near Redcar, and the Skinningrove special profiles plant, in east Cleveland.

Tata last year signed a memorandum of understanding with US investor firm Klesch Group ahead of a proposed sell-off of all or parts of the business, which also includes a rail consultancy in York and distribution sites in Teesside and Newcastle.

However, official from steel unions Community, Unite, the GMB and Ucatt, worried at potential damage to jobs and pensions, appointed independent firm Syndex to look into the bid and assess potential alternatives.

A spokesman last night confirmed a decision was looming.

He said: “Work is still being done by Syndex.

“Once it has finished we will need to get back in discussions with Tata because the report will look at the alternatives and the rationale of the sale itself.

“The next stage after that will be talks with Tata, which they have promised, in terms of being a responsible seller and not just getting rid of the business.”

Swiss-based Mr Klesch, a former Ohio steel mill electrician, visited the North-East last year to tour Tata’s sites, and talks are continuing between his Klesch Group and steel bosses.

Due diligence is expected to be completed in the spring.

Mr Klesch previously played down job fears, saying he understood industry challenges and was ready to take them on.

He added: “Everyone seems to be talking about job losses.

That is not the case and it is too early to talk about anything of that nature.

“I grew up in a steel town, and worked at a steel mill, so I know what the industry is facing and I hope workers will have confidence in what we are doing so we can go forward together.”

Dr Karl Köhler, Tata Steel’s European managing director and chief executive, confirmed unions were looking into the sale, adding it was open to discussions.

He said: “We have started the consultation process, and it is part of this, and good custom, that the unions check the position but also check out alternatives that they might have found.

“That happens in any restricting measure; it’s normal and we are open to that.”

Tata’s Hartlepool pipe mill, which supplies steel for energy projects, is not part of the proposed deal.