Key facts
- The UK government intends to nationalize Speciality Steel UK (SSUK) to protect 1,300 jobs.
- SSUK is described as an important strategic asset and the largest producer of 'green steel' in the UK.
- The insolvent steelmaker was formerly part of Sanjeev Gupta's industrial empire.
- Talks with Norwegian startup Blastr Green Steel to buy SSUK failed to finalize a deal.
- The government has been covering SSUK workers' wages, costing £3.5 million per month.
- SSUK has not produced steel for the past year.
The UK government has announced its intention to nationalize Speciality Steel UK (SSUK), a move aimed at protecting the jobs of its 1,300 employees and preserving strategic industrial assets. Business Secretary Jonathan Reynolds stated that officials will "work towards" acquiring the Yorkshire-based company, which has been run by the government's official receiver since falling into administration last year.
SSUK, previously part of Sanjeev Gupta's industrial group, has faced significant financial difficulties, particularly after the collapse of its primary lender, Greensill Capital, in 2021. A high court judge had previously described the company as "hopelessly insolvent."
Hopes for a private sector takeover had faded over the summer after talks with Norwegian steel startup Blastr Green Steel failed to materialize by a June deadline. The government had been funding SSUK workers' wages, costing £3.5 million per month, and the plants have been idle for the past year, with staff maintaining equipment.
Reynolds emphasized that the decision was not ideological but a necessary step to prevent the default closure of the company and its sites, which he described as vital for growth-driving sectors like defense and advanced manufacturing. The government has committed up to £2.5 billion to the steel industry through the National Wealth Fund, with £500 million allocated for converting Tata Steel's blast furnaces.
Shadow business minister Bradley Thomas expressed surprise at the government's shift away from a private buyer, questioning what had changed. South Yorkshire Mayor Oliver Coppard welcomed the government's action, stating it provides more time to find the best long-term outcome for the steelmaking communities.