- UK government to acquire Speciality Steel UK, the country's third-largest steelmaker
- Move follows collapse of a private-sector deal after months of due diligence
- More than 1,300 jobs at stake amid industry downturn and Chinese oversupply
- Comes two months after government nationalised British Steel from Jingye
THE UK government announced plans on Monday to acquire the country's third-largest steelmaker, after taking temporary ownership of the group last year amid an industry downturn.
The move affects more than 1,300 jobs at Speciality Steel UK, which produces specialist steel for the aerospace, defence and advanced manufacturing sectors.
Business Secretary Jonathan Reynolds said the government had been left with little choice. "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," he said in a statement.
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"Working towards public acquisition will keep options open while we work... to determine the best long-term future for these sites," he added.
The government took temporary control of Speciality Steel in August 2025 after it entered liquidation. The company is part of Liberty Steel, controlled by Indian-British businessman Sanjeev Gupta.
A government statement said officials had initially hoped to avoid taking ownership. "Throughout that process, the government's clear preference was to secure a credible private-sector solution," it said.
"A lead bidder was identified earlier this year, but after detailed due diligence and extensive discussions, the government has now concluded the proposal on the table could not provide the long-term stability," it added.
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The announcement comes two months after the government nationalised British Steel, taking control from Chinese firm Jingye to avert the shutdown of the country's last factory capable of making steel from scratch.
UK steel production, as in much of the world, has been hit by over-supply widely blamed on Chinese producers that has pushed down prices. The sector has also been affected by President Donald Trump's imposition of tariffs on steel imports into the United States.
(With inputs from agencies)
