{"id":154366,"date":"2025-08-22T10:17:23","date_gmt":"2025-08-22T09:17:23","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=154366"},"modified":"2025-08-22T13:09:04","modified_gmt":"2025-08-22T12:09:04","slug":"third-largest-uk-steelworks-collapses-government-control","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/third-largest-uk-steelworks-collapses-government-control\/154366\/","title":{"rendered":"Third largest UK steelworks collapses into government control"},"content":{"rendered":"<h2>More rough seas for the UK steel industry as Speciality Steels UK (SSUK) falls under government control, with just \u00a3600,000 in the bank<\/h2>\n<p>Speciality Steels UK is the third largest UK steelworks with around 1,500 workers across Rotherham and Sheffield.<\/p>\n<p><span style=\"box-sizing: border-box; margin: 0px; padding: 0px;\">A compulsory winding-up order was granted by the insolvency courts, with the company owing\u00a0<a href=\"https:\/\/www.gov.uk\/government\/news\/speciality-steel-uk-limited-in-liquidation-information-for-creditors-and-sub-contractors\" target=\"_blank\" rel=\"noopener\">hundreds of millions to creditors.<\/a><\/span><\/p>\n<h3>The government will covernwages and running costs for now<\/h3>\n<p>A buyer is being sought to take the company from the current owner, Sanjeev Gupta, head of the Liberty Steels group.<\/p>\n<p>Lawyers of the Liberty Steels group had tried to argue against a winding-up order, instead asking for a four-week adjournment to seek investment from BlackRock and Fidera, an angel investor company.<\/p>\n<p>However, in light of the parent company also having another 15 entities in insolvency proceedings, the lack of funds, and a high wage bill, the court found the company \u201chopelessly insolvent\u201d, and so the winding-up order was given.<\/p>\n<p>It is hoped that the selling off of Speciality Steels UK will help to maintain a hopeful outlook for UK steelmaking. Steel is critical for the construction and defence industries. In construction, it is used as a skeleton for buildings, infrastructure, and more. Network Rail has recently launched a <a href=\"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/new-240m-network-rail-steel-framework-launched\/154106\/\" target=\"_blank\" rel=\"noopener\">steel framework worth \u00a3240m<\/a> for building and maintenance of overhead lines.<\/p>\n<p>The UK steel industry has been on a downward turn for some time now, due to higher energy costs, being undercut by low prices for imported steel, and, more recently, Donald Trump\u2019s 25% tariffs on exports.<\/p>\n<p>A spokesperson of the GMB Union described the decision as &#8220;another tragedy for UK steel&#8221;.<\/p>\n<h3>A rough time for UK steel<\/h3>\n<p>In April, the <a href=\"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/british-steel-bill-passed-less-than-seven-hours\/150318\/\" target=\"_blank\" rel=\"noopener\">government passed an emergency bill<\/a> in just seven hours, titled the Steel Industry (Special Measures) Act, as British Steel (at the time owned by Jingye) was forced to admit it was losing \u00a3700,000 per day.<\/p>\n<p>Due to the bill, British Steel\u2019s board and staff is now under the control of the business secretary, Jonathan Reynolds, who hopes that the company can be salvaged as another leading producer of steel in the company.<\/p>\n<p>At the time, John Foster, chief policy and campaigns officer at CBI, said: \u201cThe government\u2019s decision to take control of British Steel is a necessary outcome of last resort needed to preserve the UK\u2019s primary steel production capability.<\/p>\n<p>\u201cWith the government\u2019s Growth Mission focused on delivering big infrastructure projects to drive economic growth, the UK mustn\u2019t lose vital steelmaking capabilities. Looking beyond today, securing a sustainable future of steelmaking must also ensure that it is supported in the transition towards electric.<\/p>\n<p>\u201cIn a period of global instability, it is increasingly important for our resilience that we have the capability within the UK to provide the steel that we need and that isn\u2019t subject to the volatile backdrop provided by tariffs.\u201d<\/p>\n<p>Frank Bouette, partner and restructuring and insolvency specialist at DMH Stallard, said: &#8220;It\u2019s hardly surprising given the high production costs of producing steel in the UK vs global competition, coupled with the long term effects of de-industrialisation and a chronic lack of investment in the development of new technologies by governments across decades.<\/p>\n<p>&#8220;It\u2019s difficult to see how the pre-pack suggested by Mr Gupta would be a long term solution without major re-organisation of and investment in the business, which has not happened to date, let alone finding an administrator who\u2019d be prepared to take on the costs and risks.<\/p>\n<p>&#8220;Government intervention in the interim was in reality the only viable practical option\u201d.<\/p>\n<div class=\"mk-custom-module-container\">\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Speciality Steels UK, the third largest UK steelworks, is now under government control with just \u00a3600,000 in the bank.<\/p>\n","protected":false},"author":32,"featured_media":154369,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[304],"tags":[908,276,32292],"stakeholder_rel_tag":[],"contributor_rel_tag":[],"class_list":{"0":"post-154366","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-planning-construction-news","8":"tag-economy","9":"tag-government","10":"tag-steel"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v26.9) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Third largest UK steelworks collapses into government control<\/title>\n<meta name=\"description\" content=\"Speciality Steels UK, the third largest UK steelworks, is now under government control with just \u00a3600,000 in the bank\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/third-largest-uk-steelworks-collapses-government-control\/154366\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Third largest UK steelworks collapses into government control\" \/>\n<meta property=\"og:description\" content=\"Speciality Steels UK, the third largest UK steelworks, is now under government control with just \u00a3600,000 in the bank\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/third-largest-uk-steelworks-collapses-government-control\/154366\/\" \/>\n<meta property=\"og:site_name\" content=\"Planning, Building &amp; 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