UK Business Secretary Jonathan Reynolds announced the UK government “will work towards the public acquisition” of Yorkshire-based Speciality Steel UK (SSUK).

“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,” said the UK government.

“The sites could play a vital in role supporting the Government’s modern Industrial Strategy, having produced specialist steel for sectors, including aerospace, defence and advanced manufacturing.

“The Government’s work towards the public acquisition of SSUK will include considering a sustainable long-term future for SSUK as a speciality steelmaker, as well as opportunities for regeneration.

“SSUK has a unique place in the UK’s steel ecosystem with capability to make specialist steel used in Industrial Strategy sectors like auto, aero and defence.

“The company’s four sites support over 1,300 jobs in Rotherham, Stocksbridge, Brinsworth and Wednesbury and have a proud history of making products including aircraft landing gear, helicopter rotors, missiles, munitions and artillery casings.”

Speciality Steels UK entered liquidation last year following longstanding financial problems under its previous ownership, particularly following the collapse of its primary lender Greensill Capital in 2021.

The government said that since then, it has worked to secure a sustainable future for the sites, funding the independent court-appointed Official Receiver to carry out the liquidation, including maintaining site safety and paying staff in the process.

“Throughout that process, the Government’s clear preference was to secure a credible private-sector solution,” said the government.

“A lead bidder was identified earlier this year, but 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.

“That’s why the Business Secretary has announced today that the Government will 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 UK government added: “SSUK entered liquidation in August last year. Separately, the Serious Fraud Office has been investigating suspected fraud, fraudulent trading and money laundering in relation to the financing and conduct of companies within the Gupta Family Group Alliance, including financing arrangements involving Greensill Capital.

“The Department for Business, Innovation, Science and Trade will now work with the Official Receiver, South Yorkshire Mayoral Combined Authority and local communities in the coming months towards public acquisition, while assessing all options for the company’s future.”