Public stewardship will be pursued to preserve 1,300 jobs at Speciality Steel UK sites in Rotherham, Stocksbridge, Brinsworth and Wednesbury, the government said. Officials will "work towards" acquiring the insolvent firm, which has been managed day-to-day by the official receiver since it entered administration last year.
Ministers had preferred a private-sector solution and held extensive discussions with Norwegian start-up Blastr Green Steel, but those talks did not produce a sale the government judged sufficient to secure the plants' long-term future. A Blastr spokesperson said the company was "disappointed by the government’s decision today concerning Speciality Steel UK, and we were not informed in advance," and added it had "a fully-funded proposal, at no cost to the British taxpayer, that is ready to complete within 12 weeks."
The move hands ministers immediate control of the sites while they consult with local leaders, workers, industry and potential investors on a lasting plan. Business secretary Jonathan Reynolds said the sites are important strategic assets and insisted the decision was pragmatic rather than ideological. Reynolds said the step would "keep options open while we work with local leaders, workers, industry and investors to determine the best long-term future for these sites," and that the plants could play a role in defence and advanced manufacturing within the government’s industrial strategy.
Production at Speciality Steel UK has been suspended during the past year, although some employees have remained on site to maintain equipment. The government has been covering staff pay since the company became insolvent, at a cost of £3.5m a month. The business’s decline followed prolonged financial strain under previous ownership, which intensified after the collapse of its main lender, Greensill Capital, in 2021. At that stage a high court judge described the firm as "hopelessly insolvent", with only £650,000 in the bank.
Local and union figures welcomed the intervention while warning that a credible private buyer is still needed for a durable solution. South Yorkshire mayor Oliver Coppard said the extra time should help secure the best outcome for steelmaking communities that face long-standing economic challenges. Community union general secretary Roy Rickhuss warned that losing SSUK would leave the UK reliant on foreign suppliers for specialist inputs to energy, advanced manufacturing and defence sectors.
Ministers already have resources intended for the sector: the national wealth fund can deploy up to £2.5bn for steel, with about £500m already allocated to converting Tata Steel’s blast furnaces to electric arc furnaces. Officials now face a near-term task, deciding whether public ownership will be a temporary bridge while a buyer is found, or the start of a longer-term state role at the four sites. Ministers said further steps will follow as they consult local stakeholders and potential investors on a lasting plan for Speciality Steel UK.
