Government to develop plan to acquire Speciality Steel

The UK government is preparing a formal proposal to acquire Speciality Steel UK, the country’s third-largest steelworks, according to statements made in the House of Commons. Business Secretary Jonathan Reynolds informed MPs that ministers are moving to take control of the business after deciding not to support a private bidder. The company operates sites in Stocksbridge and Rotherham in South Yorkshire, as well as Wednesbury in the West Midlands, and employs approximately 1,300 people.

Reynolds explained that the government initially assumed control of the firm last year after it was forced into liquidation by the High Court. The business had previously been part of Liberty Steel. Although a bidder emerged earlier this year, the government rejected the proposal due to serious concerns regarding the financing structure and the need to protect UK taxpayers. Consequently, ministers have decided to engage with the official receiver’s sale process to develop their own acquisition strategy. This approach is intended to preserve strategic control over the sites and ensure that all credible future opportunities are properly considered before any irreversible decisions are made.

Production at the steelworks was paused several months ago, with staff placed on furlough at reduced wages. Reynolds stated that any future spending commitments would be subject to detailed due diligence and funded from existing government budgets. He emphasised that working towards public acquisition would create the necessary time to undertake a full assessment of available opportunities. This includes considering future industrial use, regeneration potential, and the role that specialist manufacturing capabilities could play in supporting economic growth and national resilience. The Secretary expressed a commitment to securing a positive future for the workforce and their communities.

Sharon Graham, general secretary of the trade union Unite, responded to the announcement by describing the move as critical. She stated that the government was acting to protect jobs and listening to the union’s concerns. Graham urged that the next step must be to proceed with the nationalisation of the company. The government’s decision follows a period of insolvency proceedings and uncertainty regarding the future of the steel production sites.