(Commonwealth_ Europe) The government is quietly preparing to take over Speciality Steels UK (SSUK), a major steelwork in South Yorkshire, in a move that could save 1,500 jobs and keep one of the UK’s most important industrial plants alive. It’s a last resort, one no one wanted, but the choices are running out.
SSUK, which is part of Liberty Steel, has been in financial trouble for some time. The plant uses scrap metal to make new steel in what’s known as an electric arc furnace, a cleaner, more energy-efficient method that’s considered vital to the future of UK steel. It’s not just another factory; it’s a big part of how the country hopes to make steel greener and more sustainable. But that future has been under threat ever since Liberty’s main financial backer, Greensill Capital, collapsed in 2021. Without steady funding, SSUK has struggled to even buy the scrap metal it needs to keep its furnaces running.
This week, the company’s fate landed in court. The creditors, owed hundreds of millions, are demanding the closure and sale of the business. They want to recover what they can. But standing in the way is Sanjeev Gupta, the steel magnate behind Liberty, who’s trying to stop that from happening. He’s asking for more time to line up a rescue deal involving new private investment, reportedly from financial giant BlackRock. His legal team insists that the rescue package would save the company, keep the jobs, and avoid the taxpayers’ footing the bill.
But the government has lost patience with Gupta. Officials have turned down his previous requests for direct support and are not convinced he can deliver the deal he’s promising. Even so, they’re not ready to let the steelworks fall. In court, government lawyers revealed that ministers have already made plans to step in and run the business if it goes under.
It’s a complicated, messy situation, one with no beneficial options. The judge hearing the case made that clear when he paused the proceedings and passed the decision up to the High Court. He openly questioned what would happen if the company were forced into liquidation. “What happens to trading after the magic words are uttered?” he asked. It wasn’t just legal language; there was a real sense of concern in the courtroom. Once a company like this is shut down, restarting it becomes complicated. Equipment is lost. People move on. Communities suffer.
For the workers at SSUK, many of whom have spent years, if not decades, at the plant, this uncertainty is exhausting. Steelmaking isn’t just a job for them. It’s a way of life. It runs deep in towns like Rotherham and Stocksbridge, where generations have worked in the industry. Now, they’re watching events unfold in courtrooms and government offices, waiting for someone to decide whether their future is worth saving.
The irony isn’t lost on anyone: just months ago, the government took over British Steel in Scunthorpe, another struggling steel plant, to prevent the loss of virgin steel production in the UK. That move cost the Treasury £600 million over 10 months while officials hunted for a buyer. They found one in 2019, a Chinese firm, Jingye, but the relationship soured, and the government is now back in charge after accusing the company of planning to shut down key operations.
Now, a similar story is playing out in South Yorkshire. Ministers are faced with yet another pressing court case, a steel plant, and an impending decision. They say they’re searching for a commercial partner for SSUK, too, but behind the scenes, nationalization is becoming more likely.
For the workers, it all comes down to a few critical questions: Who will step in? Who will fight for them? And how long will they have to wait? They’ve been here before, and they know how difficult it is to obtain answers when steel becomes political. Right now, all they want is to keep doing what they do best: making steel that powers trains, cars, and buildings across the UK and beyond. They just need someone to give them a chance.
