HUNDREDS of North-East steelworkers’ futures could be secured in a business sell-off.

Liberty House and Excalibur Steel have finalised approaches for Tata Steel’s UK plants.

The advances provide a potential lifeline to 600 staff at Tata’s Hartlepool pipe mills, whose livelihoods hang in the balance as the Indian firm offloads its British operations.

Tata has already sold its loss-making Long Products division, which employs about 900 people across the North-East and York, to investor Greybull Capital for £1, and the Government has pledged to support any buyer of its remaining businesses.

Liberty, which last month took on Tata’s former plate making sites in Dalzell and Clydebridge, in Scotland, wants to switch from steelmaking in traditional blast furnaces to recycling steel in electric arc furnaces, while Excalibur, which has former Tata’s UK boss, Stuart Wilkie, as chief executive, is seeking to complete a management buy-out of Tata’s plants.

Liberty’s plans are not expected to affect Tata’s Hartlepool plants, which process steel for the offshore energy industry, including Maersk Oil’s $4.5bn North Sea Culzean project.

However, North-East MPs Tom Blenkinsop and Iain Wright last night called on Downing Street to ensure sufficient time and support is given to secure a deal.

Mr Blenkinsop, chairman of the All-Party Parliamentary Group for Steel and MP for Middlesbrough south and east Cleveland, warned while the bids were welcome, it was only after months of talks, and the subsequent pull-out of US investor Gary Klesch, that Greybull took on Long Products.

Speaking in the Commons, Hartlepool MP Mr Wright also called on Business Secretary, Sajid Javid, to do all he can for the steel sector during any sell-off, recalling problems when Redcar steelmaker SSI UK went into liquidation.

He added: “There is growing concern that firms are not supplying to Tata facilities because they fear the steel business may go into administration and they will not be paid.

“Businesses that supplied SSI do not want to get their fingers burnt twice, and customers are looking to Tata’s competitors for alternative provision.”

Outlining its bid, Liberty, said: “(The business) believes the UK steel industry can achieve long-term viability if based on an agile, sustainable model, which integrates liquid steelmaking and advanced engineering products.”

However, Excalibur’s Stuart Wilkie, previously the hub director of Tata Steel's Strip Products UK business, said: “We have a large number of the pieces in place required to make this a success, including a management team with vast experience of steelmaking and processing.

“We are confident we can turn the business around and sustain profitable UK steel-making.”

The Community union has welcomed the interest, saying it proves the British steel sector has a viable future, but reiterated the need for time.

Roy Rickhuss, general secretary, said: “The fact there are a number of parties interested shows investors believe UK steelmaking can be successful (but) there is a still a way to go in the sales process.

“Tata needs to allow sufficient time for potential buyers to come forward and we will to hold it to its commitment to be a responsible seller.”

Tata is walking away from its UK operations to escape the crippling effects of Chinese imports and escalating energy costs.