Government to Take over Speciality Steel UK in Move Set to Cost £350m
The government said the takeover would protect about 1,300 jobs and keep options open for the steelmaker’s long-term future.
- On Monday, the UK government announced plans to purchase Speciality Steel UK for around £350 million, securing the manufacturer that entered liquidation in August 2025.
- Business Secretary Jonathan Reynolds stated the government intervened after rejecting a private sector bid, citing "serious concerns about the proposed financing" and its ability to offer long-term stability for the local economy.
- The acquisition targets safeguarding about 1,300 jobs across South Yorkshire and the West Midlands, funded from the remaining portion of a £2.5 billion pot pledged in Labour's 2024 manifesto.
- Rotherham MP Sarah Champion "warmly welcomed" the intervention, while Community Union general secretary Roy Rickhuss called it a "welcome move" protecting critical energy infrastructure and advanced manufacturing capabilities.
- The government estimates the public ownership process will take four to six months, though Shadow business minister Bradley Thomas questioned if the move stems from ideological "obsession with nationalisation" rather than economic necessity.
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‘This is about the health and resilience of British democracy’ – Business minister on Reform donations
The government has said that it's 'aiming' to bring the company Speciality Steel UK (SSUK) back into public ownership, because the only private buyer lined up to take it over has now been deemed unsuitable.
The British Department of Business has initiated a process for the transfer to public ownership of Speciality Steel UK. The plant is located in Yorkshire in northern England, handing over to RIA News. "The Government is working on the acquisition by the State of Speciality Steel UK (SSUK). Enterprises provide more than 1,300 jobs," states the agency's official statement. In 2025, a company under the control of Britano-Indian Magnate Sandivia Gup…
"We don't intervene lightly in private companies, but we can't stand up and let the future of this company and more than 1,300 jobs decide by default," said business minister Jonathan Reynolds in a press release. "Working for a public acquisition will keep all options open, time to work with local officials, employees, industry and investors to determine the best way forward for these sites," he added.
UK government seeks to acquire insolvent specialist steelmaker
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