The UK government is developing a plan to nationalise Speciality Steel UK (SSUK), the country's third-largest steelworks, according to Business Secretary Jonathan Reynolds. This announcement was made during a session in the House of Commons. SSUK operates sites in Stocksbridge and Rotherham in South Yorkshire and Wednesbury in the West Midlands. The government initially took control of SSUK last year after it was forced into liquidation by the High Court.
Reynolds stated that a bidder had approached the government earlier this year, but the government opted not to support the bid due to "serious concerns" regarding the financing and protections for UK taxpayers. As a result, the government plans to pursue its own formal acquisition of the business.
Production at SSUK, which employs approximately 1,300 people, has been halted for several months, with employees placed on furlough at reduced wages. Reynolds emphasized the importance of securing a future for steelworkers and their families. He explained, "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."
The government intends to engage with the official receiver sale process and develop a proposal for the public acquisition of SSUK to preserve strategic control and evaluate future opportunities. Reynolds noted that any future decisions and spending commitments will undergo detailed due diligence and will be funded from existing government budgets. He expressed his commitment to securing a positive future for the workers and their communities.
In response, Unite general secretary Sharon Graham called the government's move "critical" and stated that it is essential to protect jobs, urging for the nationalisation of the company.