Government moves to nationalise Speciality Steel UK to protect 1,300 jobs
Firm, once part of Sanjeev Gupta’s empire, fell into administration last year but has failed to find buyer Business news – live updates One of Britain’s steelworks is to come into public ownership after the government said it would take over Yorkshire-based Speciality Steel UK (SSUK). Jonathan Reynolds, the business secretary, said officials would “work towards” acquiring the company to protect…
The government plans to take over the steelworks firm Speciality Steel UK to safeguard the 1,300 jobs at risk. Jonathan Reynolds, the business secretary, announced plans for the nationalisation of Yorkshire-based SSUK, which employs workers in Rotherham, Stocksbridge, Brinsworth, and Wednesbury. The company, previously owned by tycoon Sanjeev Gupta, entered administration last year, and its operations have since been overseen by the government’s official receiver.
Blastr Green Steel, a Norwegian startup, had been close to securing the purchase, but the deadline for finalising a deal passed in June, and hopes for a private takeover faded. Reynolds called SSUK critical assets for the UK, emphasizing that intervention was necessary to prevent the fate of the company and its workforce from being determined by default.
The steelworks have produced "green steel," which uses less-polluting electric arc furnaces, and Reynolds stated that keeping options open while seeking a long-term solution for the sites is vital for Britain's growth-driving sectors, including defence and advanced manufacturing. SSUK went bankrupt after financial problems, exacerbated by the collapse of its main lender, Greensill Capital, in 2021.
The government has backed the workers' wages with £3.5m monthly costs since then. Despite preferences for a private buyer, no viable proposal was found, leading the government to decide on public acquisition to ensure long-term stability. Blastr Steel declined to comment on the government's decision, stating that they had not been informed beforehand.
The government plans to spend up to £2.5bn on the steel industry through the national wealth fund, with £500m allocated to converting steelworks into electric arc furnaces, aiming to minimize reliance on foreign suppliers for high-value speciality steel inputs.
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