Sheffield steel: Minister says 'strong interest' in Speciality Steel amid soaring demand for products
A minister said he had a “high level of confidence” a buyer would be found for crisis-hit Speciality Steel on a visit to Sheffield.
Chris McDonald MP, minister for industry, toured Speciality Steel UK’s Stocksbridge site and said he was impressed by the skill of workers and the unique capability of the plant. He also claimed market demand for its products outstripped its capacity to make them.
Those three “fundamentals” had led to “a very strong level of interest from some very credible businesses,” he added.
He told The Star: “I share the Official Receiver’s confidence that we will find a buyer.
“There is very, very strong market demand, in fact there is not sufficient capacity to meet it.”
Mr McDonald said under the previous owner the business had struggled to land contracts due to a lack of cash to buy scrap for steelmaking and cover labour, energy and stockholding costs.
Previously part of Sanjeev Gupta’s Liberty Steel empire, Speciality Steel UK employs 1,450 at sites in Rotherham, Stocksbridge and Wednesbury.
In August, insolvency courts granted a compulsory winding up order 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 a letter to staff, the Official Receiver said if a sale was unsuccessful it would result in the ‘closure of sites’.
But Mr McDonald insisted: “There is a high level of confidence that won’t happen.”
On his visit he met South Yorkshire politicians, trade union representatives, the Official Receiver, special managers leading on the company’s liquidation and SSUK senior management.
Councillor Chris Read, leader of Rotherham Council, said at stake were “not just jobs” but “livelihoods, communities, and a proud legacy of British manufacturing excellence.”
He added: “The industry minister’s visit is a welcome sign that this government recognises the strategic importance of our steel industry - not just to our local economy in Rotherham, but to the UK’s national resilience and industrial future.
“Steel production in Parkgate has stood at the heart of Rotherham’s identity for two hundred years.
“The closure of these sites would not only be a devastating blow to our borough and South Yorkshire - but it would also leave a hole in the UK’s sovereign capability to produce the high-grade steels essential for defence, aerospace, and clean energy.
“Again today we presented a united South Yorkshire team, calling for a sustainable solution that protects skilled jobs, secures strategic capabilities, and supports long-term growth across South Yorkshire.
“It is heartening that there is strong commercial interest in continuing steel production on the site, and we will continue to urge the government to do everything in its power to ensure that this is realised.”
- RELATED: TG Jones confirms closure of landmark Sheffield shop & reveals last day of trading
- RELATED: Major retail blow for city centre as landmark shop announces closure
- RELATED: "Town is a complete shambles" - Reader's letter
- RELATED: Morrisons' two for £16 Toy Event to help parents save on festive spending