Government set to nationalise troubled steel firm
Production at SSUK sites in South Yorkshire and the West Midlands was paused earlier this year.
The UK government is planning to nationalise its third-largest steelworks, according to MPs briefed on the matter. Business Secretary Jonathan Reynolds informed the House of Commons that ministers are considering acquiring Speciality Steel UK (SSUK), a company with operations in Stocksbridge, Rotherham, and Wednesbury. The government took control of SSUK last year following its forced liquidation by the High Court after Liberty Steel collapsed.
Reynolds revealed that a potential bidder emerged earlier this year, but the government declined to back the proposal due to concerns over financing and ensuring adequate protections for UK taxpayers. Consequently, the government has decided to develop its own plan for the public acquisition of SSUK. The company, which employs around 1,300 workers, has seen production suspended for several months with staff placed on reduced wages through furlough.
Reynolds explained that the government must choose between allowing the liquidation process to unfold without influence over the future of the sites or taking action to secure strategic control. By engaging with the official receiver's sale process, the government aims to create a proposal for acquiring SSUK, which will safeguard control and allow for the consideration of all viable opportunities before making any irreversible decisions.
The future plans and expenditures related to the business will be subject to thorough due diligence and funded from government budgets.
Reynolds addressed the workers, assuring them that he would strive to secure a positive future for them, their communities, and their families.
Written by urgent.news from BBC Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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