Sheffield steel: Abu Dhabi group in bid for crisis-hit Speciality Steel
An Arabian company has made an approach to buy crisis-hit Speciality Steel, which employs hundreds in Rotherham and Sheffield, Sky News is reporting.
Arabian Gulf Steel Industries (AGSI), which is headquartered in Abu Dhabi, is believed to have lodged proposals to take control of the firm.
AGSI describes itself on its website as "the epitome of Net Zero steel", and has pledged to produce five million tons of steel by 2030, while reducing carbon dioxide emissions by more than 95 per cent compared to traditional steelmaking processes.
The company is privately owned and run by its founder and chief executive, Asam Hussain.
SSUK is for sale after collapsing into compulsory liquidation in August, in a move sought by creditors owed hundreds of millions of pounds.
The company is in the hands of the Official Receiver - a government appointed liquidator - and special managers.
In December, an Insolvency Service spokesperson told The Star: "We can confirm that the Official Receiver continues to progress bids for the sale of Speciality Steel UK.
“The sales process is ongoing, with the aim to complete a sale at the earliest opportunity.”
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Previously part of Sanjeev Gupta’s Liberty Steel empire, Speciality Steel UK employs 1,450 at sites in Rotherham, Wednesbury and Stocksbridge, Sheffield.
In October, minister for industry Chris McDonald MP said he had a “high level of confidence” a buyer would be found.It is understood Rotherham has not produced anything since July 2024 and Stocksbridge only sporadically.
Workers are on a form of furlough, with the government pumping in £50m to cover wages and other costs.
In March, it was reported SSUK had debts of £618m.
Speciality Steel UK was among scores of companies owned by parent company GFG Alliance, led by Sanjeev Gupta.
GFG Alliance borrowed millions from Greensill Capital to pay suppliers. Greensill collapsed in March 2021. Creditors, including investment bank UBS, were left trying to get at least some of their £288m back.