The UK government is pursuing the public acquisition of Speciality Steel UK (SSUK), one of the country’s largest steel producers, following the failure of a private sector bid. Business Secretary Jonathan Reynolds informed Members of Parliament that ministers are actively engaged with the sale process overseen by the official receiver, aiming to secure the future of the steelworks through government ownership.

Speciality Steel, which operates facilities in Stocksbridge and Rotherham in South Yorkshire as well as Wednesbury in the West Midlands, employs approximately 1,300 workers. The company entered liquidation last August after a High Court ruling, leading to a pause in production and many employees being placed on furlough with reduced pay.

Reynolds explained that the government had considered an offer from a private bidder, identified in reports as Norwegian firm Blastr Green Steel, but ultimately chose not to support the proposal. He cited concerns about the financing structure of the bid, the protections for UK taxpayers, and the bidder’s ability to deliver long-term stability for both the local economy and community as key reasons for this decision.

“We took a long, hard look at the offer but had serious concerns about the proposed financing, the protections for UK taxpayers, and whether it could offer the long-term stability the local economy and community needs,” Reynolds said. He emphasized that the government could either allow the liquidation process to proceed without influence or intervene to maintain strategic control over the assets. Reynolds added that a government-led acquisition would preserve important options and prevent irreversible decisions from being made without careful consideration.

The government’s move marks a shift away from previously identified private sector solutions. Bradley Thomas, shadow business minister, expressed surprise at the change in direction, noting that the government had initially pointed to a preferred private bidder but has since opted for a public acquisition model.

The proposed takeover is estimated to cost around £350 million. The government has not yet detailed the timeline for the acquisition or the specific plans for reactivating production at the sites. The intervention highlights ongoing concerns about the stability and future of the UK steel industry, particularly given the strategic importance of domestic steel production to local economies and national infrastructure.