THE UK government is considering a potential rescue plan for Speciality Steel UK (SSUK), part of the Liberty Steel Group, if its parent company collapses after an insolvency hearing next week.
Business secretary Jonathan Reynolds is reportedly exploring options, including taking full control of the business, which employs 1,450 people at Rotherham and Sheffield, The Guardian reported. This follows the government’s intervention in British Steel’s Scunthorpe plant.
A government spokesperson said: “We continue to closely monitor developments around Liberty Steel, including any public hearings, which are a matter for the company. It is 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.”
Liberty Steel, which has not produced steel at Rotherham for a year, has continued paying staff. The company has lost £340m over four years, The Guardian reported.
Sanjeev Gupta, whose GFG Alliance faced financial strain after Greensill Capital’s collapse, is seeking investment in SSUK. Talks with a major investor are ongoing, according to union Community.
The GMB union said it supports government intervention. A Liberty Steel spokesperson said SSUK remains valuable and is aligned with demand in sectors like aerospace and defence.
The group remains under investigation by the Serious Fraud Office since 2021.
(Photo credit: PTI)
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