𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

The Government has taken control of the UK’s third largest steelworks in a bid to save 1,450 jobs at the site.

The high court confirmed on Thursday that Speciality Steel – previously part of Sanjeev Gupta’s Liberty Steel business – would face a compulsory liquidation.

The operation, which has plants in Rotherham and Stocksbridge in South Yorkshire, will be placed into the hands of the Official Receiver and special managers from advisory firm Teneo.

Ongoing wages and costs to keep the plant running will be covered by the Government until a buyer is found.

However, bosses at Speciality Steel said the move to wind up the business is “irrational”.

Jeffrey Kabel, chief transformation officer said: “The decision to push Speciality Steel UK into compulsory liquidation, especially when we have support from the world’s largest asset manager to resume operations and facilitate creditor recovery is irrational.

“The plan that GFG (Sanjeev Gupta’s parent business) presented to the court would have secured new investment in the UK steel industry, protecting jobs and establishing a sustainable operational platform under a new governance structure with independent oversight.

“Instead, liquidation will now impose prolonged uncertainty and significant costs on UK taxpayers for settlements and related expenses, despite the availability of a commercial solution.”

GFG said it will put forward a bid to retake control of the business alongside debt and equity partners and present this to the Official Receiver.

A Government spokesperson said: “We know this will be a deeply worrying time for staff and their families, but we remain committed to a bright and sustainable future for steelmaking and steel making jobs in the UK.

“It is now for the independent Official Receiver to carry out their duties as liquidator, including ensuring employees are paid, while we also make sure staff and local communities are supported.”

UK Steel director general Gareth Stace said: “UK Steel welcomes the Government’s recognition of the importance of the Liberty Speciality Steel assets and hopes that a new owner is found quickly and can inject the investment and working capital required to return production volumes to previous levels.

“The assets produce high quality, specialist steels that serve high value markets.

“The low production levels of recent years have left significant holes in the domestic supply chain that have been filled by imports.

“We hope to see these holes quickly filled by UK-made steel.”

A spokesman for steelworkers’ union Community said: “These are worrying developments, and we are seeking clarification on what this means for our members and their livelihoods.

“Jobs must be protected, and these sites – which are vital strategic assets – need to resume production as soon as possible.”

Shadow business secretary Andrew Griffith blamed situation on “Labour’s ruinously high energy costs driven by net zero dogma”.