News: Government announces plans to acquire Rotherham steelworks
The Government has announced that it will work towards the public acquisition of Speciality Steel UK (SSUK).
Last August, a judge approved an application from creditors to place SSUK, previously part of Liberty Steel and GFG Alliance, into compulsory liquidation. Teneo Financial Advisory Limited were brought in as Special Managers whilst a formal sale process takes place.
The company’s sites support over 1,300 jobs in Rotherham, Stocksbridge, Brinsworth and Wednesbury and have a proud steelmaking history, including the use of electric arc furnace technology at Aldwarke in Rotherham. It has produced products including aircraft landing gear, helicopter rotors, missiles, munitions and artillery casings.
The government committed £50m to keep the sites open throughout the bidding process. Multiple companies came forward with the government confident a buyer could be found.
In April, the official receiver announced a period of exclusivity with a preferred bidder, with The Financial Times reporting that Blastr was the preferred bidder.
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However, the Business Secretary Jonathan Reynolds gave an update this week stating that, "after detailed due diligence and extensive discussions, the Government has now concluded the proposal on the table could not provide the long-term stability, certainty and value for money that workers, communities and taxpayers deserve."
Following on from intervention on British Steel, the Government will now develop a proposal for the public acquisition of SSUK, protecting jobs and securing the time needed to assess the best long-term future for these sites.
All future decisions and spending commitments will be subject to due diligence and funded from existing Government budgets.
Business Secretary Jonathan Reynolds said: "We do not intervene in private companies lightly. But nor can we simply stand aside and allow the future of this company and over 1,300 jobs to be decided by default.
"Working towards public acquisition will keep options open while we work with local leaders, workers, industry and investors to determine the best long-term future for these sites, which could play a vital role in the future of the growth-driving sectors in our Industrial Strategy, including defence and advanced manufacturing.
"I am determined that we take the time to properly assess the opportunities available here and make decisions that support growth, jobs and Britain’s industrial future."
The Government's plan to work towards the public acquisition of Speciality Steel UK (SSUK) has been welcomed in Rotherham.
Rothbiz looks at what happens next with plans to acquire the Rotherham steelworks.
Images: SSUK
Last August, a judge approved an application from creditors to place SSUK, previously part of Liberty Steel and GFG Alliance, into compulsory liquidation. Teneo Financial Advisory Limited were brought in as Special Managers whilst a formal sale process takes place.
The company’s sites support over 1,300 jobs in Rotherham, Stocksbridge, Brinsworth and Wednesbury and have a proud steelmaking history, including the use of electric arc furnace technology at Aldwarke in Rotherham. It has produced products including aircraft landing gear, helicopter rotors, missiles, munitions and artillery casings.
The government committed £50m to keep the sites open throughout the bidding process. Multiple companies came forward with the government confident a buyer could be found.
In April, the official receiver announced a period of exclusivity with a preferred bidder, with The Financial Times reporting that Blastr was the preferred bidder.
Advertisement
However, the Business Secretary Jonathan Reynolds gave an update this week stating that, "after detailed due diligence and extensive discussions, the Government has now concluded the proposal on the table could not provide the long-term stability, certainty and value for money that workers, communities and taxpayers deserve."
Following on from intervention on British Steel, the Government will now develop a proposal for the public acquisition of SSUK, protecting jobs and securing the time needed to assess the best long-term future for these sites.
All future decisions and spending commitments will be subject to due diligence and funded from existing Government budgets.
Business Secretary Jonathan Reynolds said: "We do not intervene in private companies lightly. But nor can we simply stand aside and allow the future of this company and over 1,300 jobs to be decided by default.
"Working towards public acquisition will keep options open while we work with local leaders, workers, industry and investors to determine the best long-term future for these sites, which could play a vital role in the future of the growth-driving sectors in our Industrial Strategy, including defence and advanced manufacturing.
"I am determined that we take the time to properly assess the opportunities available here and make decisions that support growth, jobs and Britain’s industrial future."
The Government's plan to work towards the public acquisition of Speciality Steel UK (SSUK) has been welcomed in Rotherham.
Rothbiz looks at what happens next with plans to acquire the Rotherham steelworks.
Images: SSUK
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