According to the media reports, the UK government is preparing to intervene in the country’s struggling steel industry once again, this time at Liberty Steel’s Speciality Steel UK (SSUK) plant in Rotherham. Facing mounting debts, the future of the site - and its 1,500 jobs - now hangs in the balance as ministers weigh whether to take control of Britain’s third-largest steelworks.
SSUK has been under financial pressure since the collapse of its main lender, Greensill Capital, in 2021.
Government’s position
- The Department for Business and Trade has confirmed that the official receiver is prepared to step in if liquidation proceeds.
- Officials emphasized that no decision has been made regarding state ownership or direct financial support.
However, government intervention remains a likely path, echoing previous takeovers, of British Steel and Tata Steel.
Gupta’s counterproposal
Sanjeev Gupta, executive chairman of GFG Alliance, is attempting to avoid government control through a management buyout plan supported by £75 million from the US-based multinational investment company BlackRock. His legal team argues this solution is preferable to liquidation, as it avoids taxpayer cost and job uncertainty.
What’s next?
High Court Judge Sally Barber has adjourned the case, demanding more evidence on what would happen post-liquidation before deciding. The case will be returned to court in the coming weeks.
If the government intervenes, it will mark yet another costly rescue for the UK’s steel sector - one that may decide the future of Britain’s green steel transition.