The government plans to acquire Speciality Steel UK to protect 1,300 jobs after a private sector bid failed to meet financial and stability requirements.
Key facts
- •The acquisition aims to protect 1,300 jobs across sites in Stocksbridge, Rotherham, Brinsworth, and Wednesbury.
- •The government estimates the total cost of the public acquisition at £350 million.
- •SSUK has been in the control of the Official Receiver since August 2023 following a High Court liquidation order.
- •The government has been paying £3.5 million monthly to cover worker wages while production has been on hold.
- •Blastr Green Steel stated it was not informed of the government's decision in advance and claimed its proposal was fully funded.
The UK government has announced plans to bring Speciality Steel UK (SSUK) into public ownership to secure the future of its 1,300 employees. Business Secretary Jonathan Reynolds stated the move follows the failure of a private sector bid from Norwegian firm Blastr Green Steel, which the government deemed financially insufficient. The acquisition process is expected to take four to six months.
By the numbers
Financial and Operational Context
SSUK, which operates sites in South Yorkshire and the West Midlands, has been under the control of the Official Receiver since being forced into liquidation by the High Court last year. The company previously faced financial collapse following the 2021 failure of its primary lender, Greensill Capital. Since the liquidation, the government has been funding worker wages at a cost of £3.5 million per month, while production has remained paused.
Government Acquisition Plan
The government estimates the acquisition will cost approximately £350 million, which includes paying off creditors and injecting working capital over one to three years. Business Secretary Jonathan Reynolds noted that this funding will be drawn from a £2.5 billion allocation for the steel industry pledged in the 2024 Labour manifesto. While the government maintains that private ownership remains the ideal, officials expressed serious concerns regarding the financing and long-term stability of the offer submitted by Blastr Green Steel.
Timeline
- 2021The company's primary lender, Greensill Capital, collapsed.
- August 2023SSUK was placed under the control of the Official Receiver after a High Court liquidation order.
- June 2024A deadline to finalize a private sector takeover deal passed.
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This article was independently rewritten by ManyPress editorial AI from reporting originally published by Evening Standard Business, Guardian Politics (UK).
