From the Guardian · · 1m 40s
Britain takes back a steelworks
After a year in limbo and no buyer in sight, the government is moving to put Speciality Steel UK into public hands.
In brief
After a year in limbo and no buyer in sight, the government is moving to put Speciality Steel UK into public hands. When a strategically important plant runs out of private buyers, the state ends up holding it, and the bill for waiting is already £3.5m a month. Originally reported by the Guardian.
The state steps in
Jonathan Reynolds said officials will work towards acquiring Speciality Steel UK, bringing the Yorkshire steelmaker into public ownership and protecting 1,300 jobs across four sites.
“nor can we simply stand aside and allow the future of this company and over 1,300 jobs to be decided by default”
A year in limbo
SSUK fell into administration last year and has been run day to day by the government's official receiver ever since. Nothing was resolved, and the clock kept running.
The buyer that walked
Norwegian startup Blastr Green Steel was the preferred bidder, but a June deadline passed and ministers decided its offer could not deliver long-term stability.
Blastr pushes back
Blastr says it was not told in advance and had a fully funded plan ready to close within 12 weeks at no cost to taxpayers. Its chief executive quit unexpectedly last month.
“We have a fully-funded proposal, at no cost to the British taxpayer, that is ready to complete within 12 weeks.”
How it broke
Financial trouble under previous owner Sanjeev Gupta deepened when lender Greensill Capital collapsed in 2021. A judge found the firm "hopelessly insolvent", with £650,000 left in the bank.
“hopelessly insolvent”
£3.5m a month for nothing
The government has been paying workers' wages for a year while the plants sit idle. Some staff stay on site purely to maintain the equipment.
Why this plant matters
SSUK is the biggest UK producer of green steel from electric arc furnaces, feeding defence, energy infrastructure and advanced manufacturing. Lose it and Britain imports those inputs.
“We cannot allow British industrial sovereignty in these areas to be lost.”
What it means
When a strategically important plant runs out of private buyers, the state ends up holding it, and the bill for waiting is already £3.5m a month.
