UAE-based steelmaker Arabian Gulf Steel Industries (AGSI) has approached the UK government regarding a potential takeover of Speciality Steel UK (SSUK), which entered compulsory liquidation last summer, according to a report by British channel Sky News.
AGSI is among a small number of parties that have lodged proposals to acquire SSUK, which was previously owned by Liberty Steel. SSUK was declared “hopelessly insolvent” and placed into compulsory liquidation in August, prompting the UK government to seek buyers in order to preserve domestic steelmaking capacity, as previously reported by SteelOrbis.
The SSUK business operates steelmaking sites in Rotherham and Stocksbridge, both located in South Yorkshire. At the time of its collapse, SSUK employed close to 1,500 workers across its operations. According to media reports, it remains unclear how advanced discussions between AGSI and the UK government are, while the commercial terms of any proposal have not been disclosed.
In response to enquiries, a UK government spokesperson reiterated its commitment to the future of steelmaking and steel jobs at the plant, while emphasizing that the insolvency process is being independently managed.
