Sheffield steel: Marie Tidball MP calls for Speciality Steel boss to step down ahead of winding up hearing

Marie Tidball, Labour MP for Penistone and Stocksbridge, said she had listened to constituents and agreed it was time for Sanjeev Gupta to step down.

She added: “He has run out of road; his chaotic ownership must end now. Our Stocksbridge Speciality Steels site needs new, competent ownership to maximise its potential, so that the business has a real chance for success.”

She spoke out as Liberty Speciality Steel UK faces a winding up order in court on Wednesday, May 21 brought by Harsco Metals Group over unpaid debts.

Harsco is seeking to force SSUK into liquidation so assets can be sold to pay £4m it claims it is owed for supplying machinery and staff.

Harsco declined to comment.

If Mr Gupta's operations do enter compulsory liquidation, the Official Receiver would appoint a special manager to run the operations while a buyer is sought.

In total, SSUK has debts of £618m, according to court documents.

Ms Tidball added: “As I said in Parliament earlier today, Stocksbridge Speciality Steels has strategically significant, highly specialist capability, to produce world-leading steel, crucial to our national defence, aerospace, and energy industries. The site employs 650 people and has an excellent skills training centre.

“I know the capability of the site, the extraordinary ability of the workforce and the exceptional quality steel produced in Stocksbridge. What we need now is a new owner to come forward and restore the glory of a site which has proudly made steel in our constituency for over 180 years.

“This is an exciting investment opportunity, and these works are part of the strategically important South Yorkshire Steel Corridor.”

Sanjeev Gupta is CEO and chairman of GFG Alliance, an international conglomerate that operates primarily in the steel and mining industries. Subsidiaries include Liberty House Group, owner of Speciality Steel UK.

SSUK owes £289m to lender Greensill Capital, which collapsed in 2021, £288m to sister companies, £23m to unsecured creditors, £10m to another, unnamed, lender and £7.7m in tax to HMRC, according to court documents filed in December.

A Liberty Steel spokesperson said Sanjeev Gupta had invested nearly £200m in the last four years keeping the business afloat, “recognising the vital role steel plays in supplying the UK’s strategic defence, aerospace and energy industries.”

They added: “The steel sector had faced major challenges for many years due to high energy costs and an over-reliance on cheap imports.

“Liberty Steel has faced additional issues since the collapse of its main lender Greensill Capital in 2021 and severe constraints on its ability to raise third party finance.

“Over this period Liberty has pursued all options to make its Speciality Steel UK (SSUK) business viable, including efficiency improvements, reorganisations, customer support and intensive negotiations with creditors to restructure debt liabilities.

“Despite sustained efforts over many years, it has proved challenging to overcome competitiveness issues faced by UK steel producers.

“Liberty understands the concern this has caused for Speciality Steel UK colleagues and stakeholders and is grateful for the patience and fortitude they have shown during this time.

“We continue to hold discussions with creditors on restructuring SSUK’s debt. We have always and will continue to work closely with the trades unions, elected representatives, customers and employees on the best way forward for the Speciality Steel UK business.”

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Roy Rickhuss CBE, general secretary of steelworkers' union Community, called for new ownership to end the “turbulence and uncertainty” from the “erratic and irresponsible” way the company had been run.

He added: “Failed restructuring plans and broken promises from the company have become a familiar, demoralising pattern, and things simply can't go on as they are.

"Ever since the collapse of Greensill Capital, we have worked with the company in good faith, even when refinancing deadlines have been missed. Our patience has now run out.

"Liberty Steel's plants are strategically important sites for the UK steel industry and the country as a whole, and these assets must be secured.

"New, responsible ownership is needed to give the business the brighter future it needs and deserves, and that can only be achieved with a decisive change at the top. Enough is enough - Sanjeev Gupta must invest in the business or step aside."

Last week Marie Tidball said the Government had committed £2.5 billion to secure the UK steel industry.

But the Department for Business and Trade indicated there would be no British Steel-style bail out.

A spokesperson said: “It is ultimately for Liberty to manage commercial decisions on the future of its companies, and we hope it succeeds with its plans to continue on a sustainable basis.”