Rotherham MP Sarah Champion says plan to nationalise Speciality Steel shows its "huge potential"
“ I thank the Government for seeing the potential in this key industry“
A South Yorkshire MP has “warmly welcomed” government plans to nationalise Speciality Steel claiming it shows Labour is on the side of British steel businesses.
Sarah Champion hailed the Government’s announcement it was working towards the public acquisition of the company to save jobs and buy time to assess the best long-term future of the sites.
The company, which employs 1,300 at sites in Rotherham and Stocksbridge, was put into liquidation in summer 2025 and is under the control of the Official Receiver.
The government has abandoned a year-long sales process after a ‘credible’ private buyer could not be found.
Sarah Champion said: “It is of course deeply disappointing that Speciality Steel UK remains in administration. I thank the Government for seeing the potential in this key industry.
“However, Rotherham steel workers deserve clarity about what the future holds and are, I know, keen to return to work as soon as possible.”
The government is paying wages and costs of about £3.5m-a-month.
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Many workers are on furlough, being paid a percentage of wages in the expectation of being called back to work.
Ms Champion added: “The cycle of failed ownership has held Specialty Steel back for far too long. I’m relieved the Secretary of State recognises this is a business with huge potential as a world leader in specialist steel products, with a strong track record and a skilled, experienced workforce.’
“I welcome the Government’s announcement that it will work with the Official Receiver, myself, local leaders and the South Yorkshire Mayor towards public acquisition, while assessing all options for the company’s future.
“Whatever ownership model is ultimately decided, Speciality Steel needs leadership with the vision and commitment necessary to enable the business to fulfil its potential.
“The Labour Government has demonstrated its commitment to the UK steel industry since its very first days in office.
“From its resolute action to safeguard raw steel production in Scunthorpe, to its landmark Steel Strategy, which sets out unprecedented backing for the industry, Labour has shown time and time again that it is on the side of British steel businesses.
“I am proud to see that same commitment and focus given to safeguarding Speciality Steel UK, to protecting jobs in Rotherham and to continuing our long history of steel manufacture into a prosperous, successful future.
“I will be following discussions closely and will always speak up for Rotherham steel workers.”