Unions welcome announcement of preferred bidder for Speciality Steel
Official Receiver announces major step forward in sale of South Yorkshire steel mills
Unions have welcomed the announcement of a preferred bidder for Speciality Steel, which has sites in Rotherham and Sheffield, after years of uncertainty.
The Official Receiver said it had agreed a “period of exclusivity” with a preferred bidder. And it marked the next stage of a future sale agreement.
Speciality Steel has been under the control of the Official Receiver - part of the government’s Insolvency Service - since it was put into liquidation due to its debts in August.
In a statement the Official Receiver said the exclusivity period was set to last five weeks “during which the preferred bidder will progress their bid.”
The aim was to: “Complete the sale at the earliest opportunity.”
Speciality Steel employs 1,300 at sites in Stocksbridge, Rotherham and Wednesbury, it wracked up huge debts under the ownership of GFG Alliance, owned by Sanjeev Gupta.
Community Union's general secretary, Roy Rickhuss CBE, said it was an important moment.
He added: "We look forward to meeting with the preferred bidder as soon as possible to hear more about their plans for securing jobs and investing in the business. SSUK's sites are vital strategic assets, and with the right plan in place the business can have a bright future."
Charlotte Brumpton-Childs, GMB national secretary, said: "Any sale of SSUK must include due diligence which guarantees ongoing operations and stability of the sites.
"GMB members have been at the sharp end of years of uncertainty at this point - his needs to be a deal that secures the long-term future steelmaking in South Yorkshire."
Names rumoured as potential buyers include the world’s second biggest steel firm, ArcelorMittal, Norwegian company Blastr, 7 Steel UK, owned by Czech energy tycoon Pavel Tykac, and Arabian Gulf Steel Industries, headquartered in Abu Dhabi.
The Star understands the preferred bidder is Norwegian firm Blastr.