Shock and dismay as government spurns Blastr's bid to buy Speciality Steel "at no cost to the taxpayer"
“We are disappointed by the government’s decision concerning Speciality Steel UK, and we were not informed in advance”
The company that hoped to buy Speciality Steel UK was on site when it heard the surprise the government’s nationalisation plans.
Blastr Green Steel said it had spent months developing a fully-funded private sector plan to buy SSUK “at no cost to the British taxpayer”.
And news the deal was off came as a surprise.
A Blastr spokesperson said: “We are disappointed by the government’s decision today concerning Speciality Steel UK, and we were not informed in advance.
“Over the course of several months, we have advanced our plans for a private sector solution to acquire SSUK – and were today on site in South Yorkshire with investors and strategic partners.
“We have a fully-funded proposal – at no cost to the British taxpayer – that is ready to complete within 12 weeks.”
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 for months to sell it and in April announced a five-week exclusivity period with preferred bidder Norwegian firm Blastr.
Now it has announced plans to nationalise Speciality Steel after failing to find a “credible private sector solution”.
Ministers say Blastr Green Steel’s bid 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.”
He added: “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.”