The UK government is developing plans to nationalize Speciality Steel UK (SSUK), the country's third-largest steelworks, Business Secretary Jonathan Reynolds announced in the House of Commons. SSUK operates sites in Stocksbridge and Rotherham in South Yorkshire, and Wednesbury in the West Midlands.
This move follows the government's initial intervention last year when it took control of SSUK, formerly part of Liberty Steel, after the company was forced into liquidation by the High Court. Reynolds explained that while a bidder had emerged earlier this year, the government decided against supporting the proposal due to "serious concerns" about its financing and the protection of UK taxpayers. Consequently, ministers opted to pursue a formal government acquisition of the business.
Production at SSUK's facilities, which employ approximately 1,300 people, was paused several months ago, with employees placed on furlough and receiving reduced wages.
"Having concluded that we cannot support the preferred bidder's proposal, we are faced with a choice," Reynolds stated. "We can allow events to take their course through the liquidation process and risk being left with no say in the future of these sites, or we can act."
The government will now engage with the official receiver's sale process and develop a proposal for the public acquisition of SSUK. Reynolds emphasized that this action will preserve strategic control and allow for a thorough consideration of all credible future opportunities before irreversible decisions are made.
Any future decisions and spending commitments related to the business will undergo detailed due diligence and be funded from existing government budgets. Reynolds added that pursuing public acquisition will provide the necessary time and space to fully assess available opportunities. This includes considering future industrial use, regeneration prospects, and the potential role of specialist manufacturing capabilities in supporting economic growth and national resilience.
Addressing the affected workers, Reynolds conveyed his commitment to securing a bright future for them, their communities, and their families.