The government is developing a plan to nationalise Speciality Steel UK (SSUK), the country’s third-largest steelworks, after deciding against backing the preferred bidder for the business, Business Secretary Jonathan Reynolds has told the House of Commons.
SSUK, previously part of Liberty Steel, employs about 1,300 people at sites in Stocksbridge and Rotherham in South Yorkshire and Wednesbury in the West Midlands. The government took control of the company last year after it was forced into liquidation by the High Court.
Reynolds told MPs that a bidder had come forward earlier this year, but the government had decided against supporting it. He cited “serious concerns” over the proposed financing of the deal and “protections for UK taxpayers”.
Ministers had therefore decided that the government would plan its own formal acquisition of the business, he said.
Production paused
Production at SSUK was paused several months ago, and staff have been placed on furlough on reduced wages.
In a press release published yesterday, the government said the company operates four sites, in Rotherham, Stocksbridge, Brinsworth and Wednesbury, which produce specialist steel for the aerospace, defence and advanced manufacturing sectors. It said the lead bidder’s proposal could not provide “the long-term stability, certainty and value for money that workers, communities and taxpayers deserve”.
According to the government, SSUK entered liquidation in August 2025, following financial difficulties linked to the collapse of lender Greensill Capital in 2021. The government did not name the bidder. Business Matters reported in April that Norwegian green-steel start-up Blastr had entered exclusive negotiations to acquire the South Yorkshire works.
Reynolds told the Commons: “Having concluded that we cannot support the preferred bidder’s proposal, we are faced with a choice.
“We can allow events to take their course through the liquidation process and risk being left with no say in the future of these sites, or we can act.
“We will therefore engage with the official receiver sale process and develop a proposal for the public acquisition of SSUK.
“This will preserve strategic control and ensure that all credible future opportunities can be properly considered before irreversible decisions are taken.”
Funding and next steps
Reynolds said future decisions and spending commitments relating to the business would be “subject to detailed due diligence and funded from existing government budgets”.
He added: “Working towards public acquisition will create the necessary time and space to undertake a full assessment of the opportunities available.
“It will let us consider future industrial use, regeneration opportunities and the role that specialist manufacturing capabilities could play in supporting growth and our national resilience.”
The government said it would work with the Official Receiver and the South Yorkshire Mayoral Combined Authority on the next steps. In the release, Reynolds said the approach would “keep options open while we work with local leaders, workers, industry and investors”.
In a message to workers, Reynolds said: “I will do all I can to secure a bright future for you, your communities and your families.”
The move follows a long period of uncertainty at the business. When Liberty Speciality Steel collapsed into government receivership in August 2025, UK Steel’s Gareth Stace said: “We hope a new owner is found quickly who can inject the investment and working capital required to return production volumes to previous levels.”
The government has said a Serious Fraud Office investigation is under way into suspected fraud linked to Greensill Capital financing.
Responding to the announcement, Unite general secretary Sharon Graham said: “This is a critical move.
“The government is listening to Unite and is acting to protect jobs. Now we need to get on and nationalise the company.”
Jamie Young
Jamie Young is Senior Reporter at Business Matters, covering SME finance, employment law and Westminster policy since 2016. He has reported on every Budget and Autumn Statement since 2018, helped make sense of the 'covid era' and the bounce-back loan scheme from launch through the fraud investigations, and broke the magazine's coverage of the 2024 late-payment reforms. He joined Business Matters straight from completing his BA in Administration from Exeter University and is NCTJ-qualified. Reach him at jyoung@cbmeg.co.uk
