The Government has announced plans to work towards the public acquisition of Speciality Steel UK (SSUK), a move aimed at safeguarding more than 1,300 jobs and securing the future of a business regarded as strategically important to the UK's manufacturing and defence supply chains.
Business Secretary Jonathan Reynolds said the Government would develop proposals for public ownership after concluding that a private-sector solution would not provide the long-term stability required for the company's operations at Rotherham, Stocksbridge, Brinsworth and Wednesbury.
SSUK (formerly
Liberty Speciality Steels) occupies a unique position within the UK steel industry, producing specialist grades used in sectors including aerospace, automotive, defence and advanced manufacturing. The company's sites have a long history of steelmaking and have manufactured products ranging from aircraft landing gear and helicopter rotors to missiles, munitions and artillery casings.
The announcement follows a prolonged period of uncertainty for the business. SSUK entered liquidation in August last year after facing longstanding financial difficulties, exacerbated by the collapse of Greensill Capital in 2021. Since then, the Government has funded the court-appointed Official Receiver to oversee the liquidation process, maintain safe operations at the sites and ensure employees continued to be paid.
Ministers had previously made clear that their preferred outcome was a private-sector rescue. A lead bidder was identified earlier this year and discussions progressed through detailed due diligence. However, the Government has now concluded that the proposal failed to offer sufficient long-term stability, certainty or value for money.
Announcing the decision, Reynolds stressed that state intervention was not being undertaken lightly. He said: "We do not intervene in private companies lightly. But nor can we simply stand aside and allow the future of this company and over 1,300 jobs to be decided by default."
He added that public acquisition would "keep options open while we work with local leaders, workers, industry and investors to determine the best long-term future for these sites", which could play an important role in sectors identified within the Government's Industrial Strategy, including defence and advanced manufacturing.
The Government said its work towards acquisition will include examining a sustainable long-term future for SSUK as a speciality steel producer, alongside wider regeneration opportunities linked to the sites and their surrounding communities. Any future spending commitments will remain subject to due diligence and will be funded from existing departmental budgets.
South Yorkshire Mayor Oliver Coppard welcomed the move, highlighting the importance of the business to local communities. "Since the day the company went into liquidation, I've been working with Government at the highest levels along with staff, unions and our local partners to help deliver a sustainable, long-term future for these sites," he said.
"I'm pleased the Government has taken action. It's the next important step forward, giving us more time to find the best possible outcome for our steelmaking communities."
The Department for Business, Innovation, Science and Trade will now work with the Official Receiver, the South Yorkshire Mayoral Combined Authority and local stakeholders to assess options for the company's future while advancing plans for public ownership.
Industry figures have also welcomed the announcement. UK Steel director-general Gareth Stace said the Government was "once again stepping up to do what is needed for the UK steel industry". He added that SSUK was already progressing towards full operations and remained a critical part of domestic supply chains.
Mr Stace said: "It is crucial that the custodian of this key strategic asset is the right owner and investor, with the expertise and long-term ambition that the dedicated workforce deserve."
The decision comes as the Government seeks to strengthen domestic steelmaking capacity and increase UK self-sufficiency in steel production. Officials believe a revival in SSUK's output could ease pressure on steel import quotas while supporting ambitions to raise domestic supply from around one-third of demand to between 40% and 50% over time.
For now, the immediate priority is preserving jobs and maintaining production while Government evaluates the long-term future of one of Britain's most important speciality steelmakers.
Pic: The SSUK manufacturing plant in Rotherham