The British government intends to nationalize Speciality Steel UK (SSUK) through a government acquisition to ensure the future of another electric arc furnace in the country, the British Minister for Business, Innovation, Science and Trade said on Monday, September 14.
The decision was made after the authorities considered that the preferred bidder was not suitable for the proposed transaction. Following the review and negotiations, the government stated that the proposal lacks the long-term sustainability, certainty, and value for money that employees, local communities, and taxpayers deserve.
The Norwegian startup Blastr was previously named the preferred bidder, but the exclusive rights to purchase expired in June.
Business Minister Jonathan Reynolds noted:
"We do not interfere in the affairs of private companies unnecessarily. But we also can't just stand by and let the future of this company and more than 1,300 jobs be decided by default."
He added that the decision preserves the opportunity for SSUK to choose the best long-term development path as a specialized steel producer. The timing of a possible acquisition has not yet been confirmed.
SSUK is a division of Liberty Steel, part of Sanjeev Gupta's GFG alliance. In August 2025, the company announced liquidation amid years of financial difficulties that had accumulated under the previous owner, including after the bankruptcy of the main creditor Greensill Capital in 2021.
SSUK's assets include an electric arc furnace in Rotherham, South Yorkshire, with a capacity of 1.3 million tons of steel per year, mainly rolled products. The company also has facilities in Brinsworth, which produces up to 300,000 tons of hot-rolled coils and other grades of steel per year, and a site in Stocksbridge with a production capacity of up to 500,000 tons of rolled products. In addition, SSUK owns another factory in the West Midlands.
The resumption of work can support the domestic steel and scrap market. Before the shutdown, SSUK was one of the largest consumers of scrap metal in the UK, and market participants are closely monitoring the possible restart of the company.
The UK Steel Trade Association, which represents the country's steel companies and most processing plants, welcomed the government's decision. According to her, the capacity of the plants in South Yorkshire is increasing and should reach full capacity by the end of the year.
The association reported that the rolling mills Stocksbridge, Bright Bar and Thrybergh continued to operate during the liquidation period and increased output under contracts. Financing has also been allocated for the resumption of smelting, and the launch of electric arc furnaces is expected in December.
UK Steel CEO Gareth