The UK government has stepped in to take control of Liberty Steel’s Speciality Steel UK (SSUK) plant in Rotherham, aiming to safeguard nearly 1,500 jobs amid severe financial challenges, according to media reports. The move follows an insolvency court ruling that declared the plant “hopelessly insolvent”, granting a compulsory winding-up order sought by creditors owed hundreds of millions of pounds.
While the government assumes responsibility for covering wages and operational costs, a buyer will be sought to secure the long-term future of the facility.
Court ruling and financial troubles
The court decision was based on uncertainty over whether Liberty Steel owner Sanjeev Gupta could secure new funding. Creditors have pushed for liquidation after months of delays and failed restructuring talks.
Jeffrey Kabel, chief transformation officer at Liberty Steel Group, criticized the decision, calling it “irrational” given that GFG Alliance, the parent company of Liberty Steel, had support from one of the world’s largest asset managers to restart operations and enable creditor recovery.
Liberty Steel’s efforts to save SSUK
According to Kabel, Liberty Steel pursued multiple avenues to keep SSUK viable, including: efficiency improvements and operational reorganizations, securing customer support for continuity, negotiations with creditors to restructure debt, and exploring buyer interest in the business.
Liberty’s shareholder has already invested nearly £200 million, underlining the company’s belief in the plant’s importance to the defense, aerospace and energy industries in the UK.
Future outlook
Despite the liquidation order, GFG Alliance confirmed it will continue its bid for the Rotherham business in collaboration with debt and equity partners. The group plans to present its proposal to the official receiver, arguing it has the expertise and strategy to secure new investment and lead SSUK into a sustainable future.