UK Business Secretary Jonathan Reynolds has announced that the government will prepare a proposal for the public acquisition of Speciality Steel UK (SSUK).
The decision follows the government’s conclusion that it could not support the proposed sale to the preferred bidder. A potential public acquisition would keep open various options for the future of specialty steel production, advanced manufacturing, the redevelopment of the sites and future private-sector investment.
Four sites employ more than 1,300 people
SSUK’s sites in Rotherham, Stocksbridge and Brinsworth in South Yorkshire, as well as its facility in Wednesbury in the West Midlands, employ more than 1,300 people in total.
The company operates electric arc furnace technology and plays an important role in the UK’s ability to produce specialty steels used in the automotive, aerospace, defence and advanced manufacturing sectors.
Its facilities have historically produced specialty steels used in products including aircraft landing gear, helicopter rotors, missiles, ammunition and artillery shell casings. The government said this production capability could play an important role in supporting sectors targeted for growth under the country’s industrial strategy.
Long-term options to be assessed
As part of the government’s work on a potential public acquisition, options will be examined to enable SSUK to continue operating as a specialty steel producer in the long term, as well as opportunities to redevelop its sites.
Earlier this year, a preferred bidder had been identified for the company. However, following detailed due diligence and extensive discussions, the government concluded that the proposal would not provide the long-term stability, certainty and financial value required for employees, local communities and taxpayers.
The government said its preferred option had been a credible private-sector solution, but it was now considering public ownership after determining that the current proposal was not suitable.
Future decisions and spending commitments will be subject to the necessary approvals, while any potential acquisition would be funded through existing government budgets.
Reynolds: “We cannot stand by as the future of more than 1,300 jobs remains uncertain”
Business Secretary Jonathan Reynolds said the government does not intervene lightly in private companies, but it could not allow the future of SSUK and more than 1,300 jobs to remain uncertain.
He said work towards public ownership would keep options open and allow the government to work with local leaders, employees, industry representatives and investors to determine the long-term future of the sites.
Reynolds added that SSUK’s facilities could play an important role in growth-supporting sectors, including defence and advanced manufacturing. He said the government would take the necessary time to assess the existing capabilities properly and make decisions that support growth and employment.
First Secretary of State Louise Haigh said the government would not stand by while critical industries decline and jobs are lost. She said the government would work with regional and local partners over the coming months to determine the right path forward for employees, local communities and the country.
South Yorkshire Mayor Oliver Coppard said that since the company entered liquidation, the government, employees, trade unions and local partners had been working together to secure a sustainable future for the sites.
Coppard described the government’s intervention as an important step, saying it would provide more time to determine the best outcome for the communities where steel production is concentrated. He added that uncertainty remained for employees and their families and that local and national partners would continue to provide support throughout the process.
Company entered liquidation in August 2025
Speciality Steels UK entered liquidation in August 2025 following prolonged financial difficulties under its previous ownership. The company’s financial problems deepened after its main financier, Greensill Capital, collapsed in 2021.
Following the liquidation decision, an independent Official Receiver was appointed by the court. The UK government funded the continuation of the liquidation process, site security and employee wage payments during this period.
The UK Serious Fraud Office is also investigating suspected fraud, fraudulent trading and money laundering offences relating to the financing and activities of companies within the Gupta Family Group Alliance, including financing arrangements linked to Greensill Capital.
The Department for Business, Innovation and Trade will work with the Official Receiver, the South Yorkshire Mayoral Combined Authority and local communities over the coming months to explore the option of public acquisition. Other options for the future of the company will also be considered.
Comments
No comment yet.