News: Government involvement in future of Speciality Steels "not envisaged"
The government has ruled out taking a stake in South Yorkshire's speciality steel business and remains confident a buyer can be found.
In August, a judge approved an application from creditors to place Speciality Steels UK (SSUK), previously part of Liberty Steel and GFG Alliance, into compulsory liquidation. With the Official Receiver taking over, and the Government covering costs with Teneo Financial Advisory Limited as Special Managers, a formal sale process recently got underway.
An update from Minister for Industry, Chris McDonald, shared by Rotherham MP, Sarah Champion, states: "The Government is providing financial assistance to enable the Official Receiver to fulfil its statutory duties and identify a suitable buyer capable of operating a sustainable steelmaking business.
"The Official Receiver is currently inviting indicative offers from interested parties. From early November, these offers will enter a due diligence phase. Over the coming weeks, the focus will be on evaluating the proposals received, determining the optimal strategy, and preparing for the next stage of the sales process. Final bids will be formally requested to structure the concluding transaction discussions.
"As part of this wider process, we do not envisage any direct Government involvement in the business, including taking a stake, as you suggested in your letter. We want the steel sector to thrive, and the best way to achieve that is through commercially run businesses with private investment."
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The minister recently met with local politicians to tour the sites in Rotherham and Stocksbridge.
Cllr Chris Read, Leader of Rotherham Council, described the visit as "a welcome sign that this government recognises the strategic importance of our steel industry - not just to our local economy in Rotherham, but to the UK’s national resilience and industrial future."
Read added: “Steel production in Parkgate has stood at the heart of Rotherham’s identity for two hundred years. These are not just jobs. They are livelihoods, communities, and a proud legacy of British manufacturing excellence.
“The closure of these sites would not only be a devastating blow to our borough and South Yorkshire — but it would also leave a hole in the UK’s sovereign capability to produce the high-grade steels essential for defence, aerospace, and clean energy.
“We presented a united South Yorkshire team, calling for a sustainable solution that protects skilled jobs, secures strategic capabilities, and supports long-term growth across South Yorkshire. It is heartening that there is strong commercial interest in continuing steel production on the site, and we will continue to urge the government to do everything in its power to ensure that this is realised.”
Chris McDonald added: "I met with workers, Trade Union representatives, and local authorities, including the South Yorkshire Mayor, Oliver Coppard. It was clear from these conversations how deeply the steel industry is woven into the fabric of the local community. The business clearly has a unique capability in the UK, a highly capable workforce and there is a strong market for its products. Whilst it is for the Official Receiver to run the process, I remain confident that a buyer for this business will be found.
"I fully recognise the uncertainty this situation brings for employees and their families. I want to reaffirm the Government's commitment to securing a strong and sustainable future for steelmaking in the UK, particularly in South Yorkshire, where I hope to see a buyer emerge who can run a successful and enduring business."
Council reports have revealed that the Speciality Steel operations in Rotherham had the borough's biggest bill for business rates - £2.8m a year. Liquidation has presented a financial challenge to the Council through the need to write off £4.2m of business rates debt, spanning across the final quarter of 2023/24 through to 21st August 2025. Due to the way business rates are retained, the Council is only directly impacted by 49% of this debt.
Images: Sheffield Council
In August, a judge approved an application from creditors to place Speciality Steels UK (SSUK), previously part of Liberty Steel and GFG Alliance, into compulsory liquidation. With the Official Receiver taking over, and the Government covering costs with Teneo Financial Advisory Limited as Special Managers, a formal sale process recently got underway.
An update from Minister for Industry, Chris McDonald, shared by Rotherham MP, Sarah Champion, states: "The Government is providing financial assistance to enable the Official Receiver to fulfil its statutory duties and identify a suitable buyer capable of operating a sustainable steelmaking business.
"The Official Receiver is currently inviting indicative offers from interested parties. From early November, these offers will enter a due diligence phase. Over the coming weeks, the focus will be on evaluating the proposals received, determining the optimal strategy, and preparing for the next stage of the sales process. Final bids will be formally requested to structure the concluding transaction discussions.
"As part of this wider process, we do not envisage any direct Government involvement in the business, including taking a stake, as you suggested in your letter. We want the steel sector to thrive, and the best way to achieve that is through commercially run businesses with private investment."
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The minister recently met with local politicians to tour the sites in Rotherham and Stocksbridge.
Cllr Chris Read, Leader of Rotherham Council, described the visit as "a welcome sign that this government recognises the strategic importance of our steel industry - not just to our local economy in Rotherham, but to the UK’s national resilience and industrial future."
Read added: “Steel production in Parkgate has stood at the heart of Rotherham’s identity for two hundred years. These are not just jobs. They are livelihoods, communities, and a proud legacy of British manufacturing excellence.
“The closure of these sites would not only be a devastating blow to our borough and South Yorkshire — but it would also leave a hole in the UK’s sovereign capability to produce the high-grade steels essential for defence, aerospace, and clean energy.
“We presented a united South Yorkshire team, calling for a sustainable solution that protects skilled jobs, secures strategic capabilities, and supports long-term growth across South Yorkshire. It is heartening that there is strong commercial interest in continuing steel production on the site, and we will continue to urge the government to do everything in its power to ensure that this is realised.”
Chris McDonald added: "I met with workers, Trade Union representatives, and local authorities, including the South Yorkshire Mayor, Oliver Coppard. It was clear from these conversations how deeply the steel industry is woven into the fabric of the local community. The business clearly has a unique capability in the UK, a highly capable workforce and there is a strong market for its products. Whilst it is for the Official Receiver to run the process, I remain confident that a buyer for this business will be found.
"I fully recognise the uncertainty this situation brings for employees and their families. I want to reaffirm the Government's commitment to securing a strong and sustainable future for steelmaking in the UK, particularly in South Yorkshire, where I hope to see a buyer emerge who can run a successful and enduring business."
Council reports have revealed that the Speciality Steel operations in Rotherham had the borough's biggest bill for business rates - £2.8m a year. Liquidation has presented a financial challenge to the Council through the need to write off £4.2m of business rates debt, spanning across the final quarter of 2023/24 through to 21st August 2025. Due to the way business rates are retained, the Council is only directly impacted by 49% of this debt.
Images: Sheffield Council
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