UAE based AGSI submitted official bid to acquire the UK’s third largest steel producer SSUK

UAE based Arabian Gulf Steel Industries (AGSI) has submitted a formal offer to acquire Speciality Steel UK (SSUK), the UK’s third largest steel producer, which entered compulsory liquidation last year due to financial difficulties. The company is reported to be among the leading candidates in efforts aimed at safeguarding the UK’s domestic steelmaking capacity.

SSUK, previously owned by Sanjeev Gupta’s Liberty Steel Group, was placed into liquidation in August after being deemed insolvent. Prior to its collapse, the company employed approximately 1,500 workers across its production sites in Rotherham and Stocksbridge.

According to sources, AGSI is one of a limited number of interested bidders. However, details of the offer and the stage of negotiations have not been made public. Some sources suggest that AGSI may seek financial backing from the UK National Wealth Fund to support the restart of steel production in Yorkshire.

Despite this, industry observers remain cautious about the likelihood of a deal. Other investors are also said to be interested in SSUK, while its former owner Sanjeev Gupta has reportedly sought support from global funds such as BlackRock. Nevertheless, his chances of regaining control of the business are considered slim.

The UK government is closely following the sale process. A government spokesperson stated: “We remain committed to a sustainable future for steelmaking and steelmaking jobs in the UK. The independent official receiver continues to carry out their duties as liquidator, while we ensure support for workers and local communities.” The Insolvency Service has also confirmed that the sales process is ongoing and aimed at being concluded as soon as possible.

The potential sale is taking place at a challenging time for the sector, amid global steel oversupply and increased pressure from new tariffs imposed by the United States. Against this backdrop, the UK government is also understood to be considering broader restructuring and possible consolidation options across the steel industry.