A BILLIONAIRE former US steel worker has launched a bid for North-East steel mills, sparking fears for the future of 750 jobs.

Unions and politicians last night called for the Government to protect the region’s steel industry from potential asset stripping after Tata Steel revealed it’s in talks to offload the loss-making European long products business to Gary Klesch - a Switzerland-based investor who specialises in buying troubled companies.

The proposed sale includes Teesside Beam Mill at Lackenby, near Redcar, which made sections for the new World Trade Center in New York, as well as sites in Darlington and Newcastle.

In total, 6,500 jobs are affected across the UK and Europe.

Prime Minister David Cameron agreed to discuss the shock announcement with MPs.

Tata’s Hartlepool and Middlesbrough sites are not part of the deal.

If approved, Klesch Group is expected to take control in spring 2015.

Mr Klesch reassured North-East workers that no decision had been made about jobs, or which parts of the business he would keep.

“It is natural that the workforce will be feeling uncertainty and concern at this stage,” said Mr Klesch, insisting he planned “a long-term investment.”

“I grew up in a steel town, and worked at a steel mill. I know the challenges this industry faces and I hope that the staff will have the confidence in what we are doing so that we can go forward together,” the tycoon told The Northern Echo, ahead of a visit to the UK to thrash out the deal.

George Dunning, leader of Redcar and Cleveland Council, and a former steelworker, hoped Mr Klesch wasn’t planning to “make mega bucks and do a runner when the going gets tough.”

Steel unions said they had been “treated with contempt” by Tata and called for urgent talks with Cyrus Mistry, the Tata Steel chairman.