The UK government is exploring emergency options to save Speciality Steel UK (SSUK), a major South Yorkshire steelmaker employing more than 1,400 people, as fears mount it could collapse into administration following a critical court hearing next week.
Business Secretary Jonathan Reynolds is said to be actively considering contingency plans, including the possibility of taking the company into public ownership if its parent, Liberty Steel, fails to secure new funding or a buyer. The move would mark the second time in recent weeks the government has taken control of a major UK steel plant, following its intervention at British Steel’s Scunthorpe works.
SSUK, which operates sites in Rotherham and Sheffield, is part of Sanjeev Gupta’s GFG Alliance – a global industrial group that has faced financial turmoil since the 2021 collapse of its main lender, Greensill Capital. Liberty has produced no steel at Rotherham for more than a year due to cash shortages, despite housing the UK’s largest electric arc furnace. The company has, however, continued to pay staff.
Gupta, who is based in the UAE, remains in protracted negotiations with Greensill administrators and is also the subject of a Serious Fraud Office investigation, which began in 2021, into suspected fraud and money laundering. GFG Alliance denies any wrongdoing.
According to court filings, previous attempts to sell SSUK have failed, but Gupta has told unions he is in “advanced talks with a major investor” ahead of the insolvency hearing. A union source said they were still awaiting details of the potential deal but warned that if the company enters administration, ministers must act to protect jobs and strategic assets.
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