The Government has announced it will work towards the public acquisition of Speciality Steel UK, in a move confirmed by Business Secretary Jonathan Reynolds on 14 September. The decision follows the collapse of a proposed private sale that had been under discussion for much of the year.

The Government said it had identified a lead bidder earlier in the year and had since carried out detailed due diligence alongside extensive discussions. It concluded that the proposal on the table could not provide the long term stability, certainty and value for money that workers, communities and taxpayers would need. That conclusion prompted the shift towards public ownership as an alternative path forward.

Speciality Steel UK operates four sites, in Rotherham, Stocksbridge, Brinsworth and Wednesbury, which together support more than 1,300 jobs. The company has a long history in steelmaking, including the use of electric arc furnace technology, and has produced specialist steel for sectors such as aerospace, defence and advanced manufacturing. Its products over the years have included aircraft landing gear, helicopter rotors, missiles, munitions and artillery casings, reflecting the specialised nature of its output compared with more general steel production.

The company entered liquidation last year after a prolonged period of financial difficulty under its previous ownership. Those problems intensified following the collapse of its primary lender, Greensill Capital, in 2021. Since the liquidation began, the Government has funded the work of an independent, court appointed Official Receiver tasked with managing the process, including maintaining safety at the sites and ensuring staff continued to be paid throughout.

Government officials said their preference throughout this period had been to secure a credible private sector buyer. The identification of a lead bidder earlier this year reflected that approach. It was only after further scrutiny of the proposed deal that ministers concluded a private sale would not deliver the outcome needed for the sites and their workforce.

Under the new plan, the Government will now work towards developing a proposal for public acquisition. This will include assessing a sustainable long term future for the company as a speciality steelmaker, alongside potential regeneration opportunities for the sites. Officials stressed that any future decisions and spending commitments arising from this process will be subject to due diligence and will be funded from existing government budgets, rather than requiring new allocations.

Speaking about the decision, Reynolds said the Government does not intervene in private companies lightly, but added that ministers could not allow the future of the company and its workforce to be decided by default. He said the move towards public acquisition would keep options open while the Government worked with local leaders, industry figures and investors to determine the best outcome for the sites, which he linked to the Government's wider Industrial Strategy, particularly in defence and advanced manufacturing.

First Secretary of State Louise Haigh said the Government would not act as a passive observer to the decline of critical industries or the loss of skilled jobs, and confirmed that officials would work with regional and local partners in the coming months to agree next steps.

South Yorkshire Mayor Oliver Coppard welcomed the announcement, noting his continued engagement with Government, staff, unions and local partners since the liquidation began. He acknowledged that uncertainty remains for the workforce and their families, and said he remained committed to supporting them as the process continues.

Separately, the Serious Fraud Office continues to investigate suspected fraud, fraudulent trading and money laundering connected to the financing and conduct of companies within the Gupta Family Group Alliance, including arrangements involving Greensill Capital. The Department for Business, Innovation, Science and Trade said it will now work with the Official Receiver, the South Yorkshire Mayoral Combined Authority and local communities as it assesses all options for the company's future.

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