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The UK government has taken control of Speciality Steels UK (SSUK), the country’s third-largest steelworks, after a High Court ruling declared the company “hopelessly insolvent.”
The decision affects nearly 1,500 workers at sites in Rotherham and Sheffield, raising fresh uncertainty for Britain’s struggling steel industry.
Creditors, owed hundreds of millions of pounds, successfully petitioned for a compulsory winding-up order against the company, which is part of tycoon Sanjeev Gupta’s Liberty Steel empire. The court found SSUK had just £600,000 in the bank against a monthly wage bill of £3.7m, while its parent group faces insolvency proceedings in nine jurisdictions.
The business will now be run by the Official Receiver, supported by special managers from consultancy firm Teneo. The government will cover ongoing wages and costs while a buyer is sought.
Liberty Steel executives expressed disappointment, arguing they had invested heavily and presented a strong recovery case. Mr Gupta had hoped to secure funding from BlackRock and Fidera to buy back the steelworks through a pre-pack administration. However, creditors argued the company’s lack of financial transparency and debt risks meant government-backed liquidation was the best option.
The government takeover comes just months after it stepped in to control British Steel’s Scunthorpe plant, highlighting the mounting crisis in the UK steel sector. Rising energy costs, global competition, and tariffs have battered the industry.
Unions have described the collapse as “another tragedy for UK steel”, with workers demanding guarantees on pay, pensions, and a commitment to resume production.
South Yorkshire mayor Oliver Coppard welcomed the intervention but urged ministers to ensure “the brightest possible future” for steelmaking. Analysts stress there is a strategic imperative for the UK to retain domestic steel capacity, particularly for national security.
