The government will develop a formal plan to acquire Speciality Steel UK, a move intended to preserve strategic control of the company’s Stocksbridge, Rotherham and Wednesbury sites and keep options open for their future use. Business Secretary Jonathan Reynolds told MPs ministers had decided not to back a private buyer that surfaced earlier this year, and will instead engage with the official receiver sale process to put forward a public acquisition proposal.
Ministers first assumed control of SSUK last year after the business, formerly part of Liberty Steel, entered liquidation via the High Court. Reynolds said officials had turned down the preferred bidder because of "serious concerns" about how the deal would be financed and the protections offered for UK taxpayers. He warned that allowing the liquidation process to run without intervention could leave the state with no say over what happens to the sites.
Production at SSUK's plants was paused several months ago, and staff were placed on furlough with reduced wages. The company employs about 1,300 people across its South Yorkshire and West Midlands operations, making the fate of the sites an immediate local and industrial concern.
Reynolds set out that any future commitments would be contingent on detailed due diligence and would be met from existing government budgets. He said working towards public ownership would provide the time needed "to undertake a full assessment of the opportunities available" and allow ministers to consider industrial reuse, regeneration prospects and the role specialist manufacturing could play for national resilience.
The government’s intervention shifts control of decision-making from creditors and potential private buyers to ministers while formal proposals are developed. That will keep options open for preserving production, converting the assets for alternative industrial uses or pursuing regeneration projects, but it will not guarantee a return to full manufacturing without the outcomes of the due diligence process. In a message to employees Mr Reynolds said: "I will do all I can to secure a bright future for you, your communities and your families." The next steps are engagement in the official receiver sale process and detailed financial and industrial assessments before ministers decide whether to proceed with public acquisition.
