The UK government has assumed control of Speciality Steel UK (SSUK), the nation’s third-largest steelworks, as it seeks to safeguard approximately 1,450 jobs following the company’s recent administration. The High Court in London ruled on Thursday to wind up SSUK, which operates plants in Rotherham and Stocksbridge, despite the company’s plea for additional time to secure new financial support.
SSUK was previously part of Sanjeev Gupta’s Liberty Steel group, but has now been placed under the management of the government’s official receiver and special managers from the advisory firm Teneo. The High Court noted the uncertainty surrounding Gupta’s ability to secure funding as a key reason for the winding-up order. The judge emphasized the preparedness of special managers backed by the government to oversee the situation.
The UK government has indicated it is open to expressions of interest from independent third parties interested in revitalizing steelmaking at these sites. The Rotherham plant has been inactive for about a year. This situation marks a further intervention in the UK steel industry, following earlier government control of British Steel’s Scunthorpe plant due to concerns about its future under Chinese ownership.
Union representatives have voiced the need for government support for SSUK, with calls for decisive action akin to that taken with British Steel. Gupta, once noted for his efforts to stabilize the steel sector, has faced challenges in securing financing since the collapse of Greensill Capital in 2021, which had provided significant loans to his business group.
Currently, GFG Alliance, Gupta’s business entity, is under investigation by the UK’s Serious Fraud Office regarding various financial issues, although Gupta denies any wrongdoing. The special managers appointed to SSUK will attempt to maintain operations temporarily while seeking a suitable buyer. The situation remains fluid, as Gupta’s potential bid to regain control of SSUK is uncertain, pending the availability of funding. The government has expressed its commitment to supporting employees and local communities during this transition.
Source: https://www.theguardian.com/business/2025/aug/21/government-control-liberty-steel-south-yorkshire-sanjeev-gupta