News: Steel production could move from Scunthorpe to Rotherham
An electric arc furnace at a Rotherham steelworks could be used to take on production if a blast furnace in Scunthorpe is mothballed, according to reports in a national newspaper.
With the Official Receiver taking over Speciality Steels UK (SSUK), the government has committed £50m to date to keep the sites in Rotherham and Stocksbridge open.
In August, a judge approved an application from creditors to place 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.
The move followed on from the Steel Industry (Special Measures) Act 2025 which was passed quickly to enable the government to step in to save British Steel in Scunthorpe.
The Daily Mail ponders over the closure of Scunthorpe, home to the UK's last two blast furnaces still in operation. The report states: "It has emerged ministers are considering plans to end steel production at Scunthorpe and merge British Steel with Speciality Steel UK (SSUK), currently in the hands of the official receiver.
"The proposal would see SSUK’s mothballed electric arc furnace at Rotherham, South Yorkshire, restarted to provide steel to meet British Steel’s orders which include supplying Network Rail and the construction industry."
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The Rotherham site includes two electric arc furnaces (EAFs). The first casts at Aldwarke were produced in 1964. The N-Furnace, which was installed in 1993, is the larger of the two EAFs and was mothballed in 2015 at the height of the global steel crisis. Liberty reignited the N-Furnace in 2018 and the 800,000-tonne-a-year capacity furnace turns scrap metal into specialised steels for uses such as vehicle gearboxes or aircraft landing gear.
Liberty developed a "Greensteel" plan that aimed to take EAF melting capacity at Rotherham to 2 million tonnes per annum quickly and cost effectively, and with significantly lower emissions compared with coal-based blast furnaces.
An update from Rotherham MP Sarah Champion confirmed that the administration process is being extended to make sure the best bids are received from potential future owners. Multiple companies are interested with the governmment confident a buyer can be found.
Champion said: "The Government’s intention is still to keep the Rotherham and Stockbridge sites together, but it is not closed to considering alternatives. The Minister [for Industry, Chris McDonald MP] was clear that no option would be accepted unless the Administrator was convinced it led to a secure future for both locations. When I pushed him, the Minister confirmed the strategic importance of Rotherham, not least as it does have capacity to expand - which is very useful as we scale up our demand for British steel.
"I really do understand how stressful this process is for staff and those in the supply chain. All I can say to give reassurance is; the Government has committed £50 million to date to keep the sites open and it is committed to investing the time to finding the right buyer. You have my word that I will keep in close contact with the Government on this to make sure of the best outcome."
Images: Richard Doxsey / SSUK
With the Official Receiver taking over Speciality Steels UK (SSUK), the government has committed £50m to date to keep the sites in Rotherham and Stocksbridge open.
In August, a judge approved an application from creditors to place 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.
The move followed on from the Steel Industry (Special Measures) Act 2025 which was passed quickly to enable the government to step in to save British Steel in Scunthorpe.
The Daily Mail ponders over the closure of Scunthorpe, home to the UK's last two blast furnaces still in operation. The report states: "It has emerged ministers are considering plans to end steel production at Scunthorpe and merge British Steel with Speciality Steel UK (SSUK), currently in the hands of the official receiver.
"The proposal would see SSUK’s mothballed electric arc furnace at Rotherham, South Yorkshire, restarted to provide steel to meet British Steel’s orders which include supplying Network Rail and the construction industry."
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The Rotherham site includes two electric arc furnaces (EAFs). The first casts at Aldwarke were produced in 1964. The N-Furnace, which was installed in 1993, is the larger of the two EAFs and was mothballed in 2015 at the height of the global steel crisis. Liberty reignited the N-Furnace in 2018 and the 800,000-tonne-a-year capacity furnace turns scrap metal into specialised steels for uses such as vehicle gearboxes or aircraft landing gear.
Liberty developed a "Greensteel" plan that aimed to take EAF melting capacity at Rotherham to 2 million tonnes per annum quickly and cost effectively, and with significantly lower emissions compared with coal-based blast furnaces.
An update from Rotherham MP Sarah Champion confirmed that the administration process is being extended to make sure the best bids are received from potential future owners. Multiple companies are interested with the governmment confident a buyer can be found.
Champion said: "The Government’s intention is still to keep the Rotherham and Stockbridge sites together, but it is not closed to considering alternatives. The Minister [for Industry, Chris McDonald MP] was clear that no option would be accepted unless the Administrator was convinced it led to a secure future for both locations. When I pushed him, the Minister confirmed the strategic importance of Rotherham, not least as it does have capacity to expand - which is very useful as we scale up our demand for British steel.
"I really do understand how stressful this process is for staff and those in the supply chain. All I can say to give reassurance is; the Government has committed £50 million to date to keep the sites open and it is committed to investing the time to finding the right buyer. You have my word that I will keep in close contact with the Government on this to make sure of the best outcome."
Images: Richard Doxsey / SSUK
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