Government to nationalise Speciality Steel to protect jobs after failing to find 'credible' buyer
“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”
The government has announced plans to nationalise Speciality Steel after failing to find a “credible private sector solution”.
Ministers say Blastr Green Steel’s bid to buy the company could not provide the long-term stability, certainty and value for money that “workers, communities and taxpayers deserve”.
Business Secretary Jonathan Reynolds said the Government would develop a proposal for the public acquisition of SSUK, protecting jobs and securing time to “assess the best long-term future for these sites”.
Speciality Steel UK supports more than 1,300 jobs in Rotherham, Brinsworth, Stocksbridge and Wednesbury.
It has been under the control of the Official Receiver - part of the government’s Insolvency Service - since it was put into liquidation in summer 2025.
The government tried to sell it and in April announced a five-week exclusivity period with preferred bidder Norwegian firm Blastr.
Now the deal, and private sector ownership, is off.
Mr 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."
It comes after the government nationalised British Steel in Scunthorpe in July, to save the blast furnaces and protect national security.
Of the SSUK nationalisation, First Secretary of State Louise Haigh said: "This Government refuses to be a passive observer to the decline of our critical industries and the loss of good jobs. Inaction is not an option.
"Over the coming months, we will work with regional and local partners to agree a way forward that delivers for employees, the community and the country."
South Yorkshire Mayor Oliver Coppard said: “Since the day the company went into liquidation, I’ve been working with Government at the highest levels along with staff, unions and our local partners to help deliver a sustainable, long-term future for these sites.
“I’m pleased the Government has taken action. It’s the next important step forward, giving us more time to find the best possible outcome for our steel making communities – places where people have faced economic challenges and real barriers to opportunity for far too long.
“I know the workforce, their families and our communities are still feeling some uncertainty about what the future holds. I’m fully committed to working with our local and national partners, to do everything we can to continue our support for people as the process continues.”
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.