The UK government has stepped in to take control of Speciality Steel UK (SSUK), the country’s third-largest steelworks, after the business was placed into compulsory liquidation by the High Court.
The court ruled that the business, part of Sanjeev Gupta’s GFG Alliance, was “hopelessly insolvent.” The Official Receiver appointed Teneo as special manager, with the Department for Business and Trade covering the company’s immediate operational costs. Around 1,450 jobs across plants in Rotherham and Stocksbridge are being protected during the administration period.
Although SSUK has not produced steel for nearly a year, the government described the business and its workforce as “strategic assets for the UK.” The sites will continue to operate under state supervision while options for their long-term future are explored.
Losses at SSUK have reached £340 million over the past four years, and court filings revealed that the company held just £650,000 in its accounts at the time of insolvency. The collapse marks a severe blow for Gupta, whose companies were already under scrutiny following the collapse of Greensill Capital, a key financial backer of his steel operations.
A last-ditch effort to restructure the business through a pre-pack administration, with support from investment group BlackRock, failed to convince creditors. That opened the path to government control, echoing an earlier intervention at British Steel’s Scunthorpe works earlier this year.
The UK steel sector has come under mounting strain, facing high energy costs, intense international competition, and limited access to capital. In April, ministers invoked the Steel Industry (Special Measures) Act 2025 for the first time to secure operations at Scunthorpe. The legislation gives government emergency powers to intervene in businesses deemed vital to national security.
Policy support has since widened. Steel was designated as critical to national security earlier this summer, ensuring UK-produced steel will receive preference in government infrastructure contracts. Ministers also tightened controls on imports, capping annual growth in foreign steel volumes at just 0.1 per cent, compared with three per cent previously, to shield domestic producers from dumping.
For South Yorkshire, the government’s intervention brings short-term reassurance but also renewed uncertainty. The Rotherham plant has been largely mothballed for months, and restarting production will depend on attracting buyers willing to commit fresh investment. The government has confirmed that wages will be paid while administrators search for a buyer.
Union leaders welcomed the decision to protect jobs but called for a broader industrial strategy to avoid a cycle of reactive measures. Meanwhile, commentators have criticised the piecemeal approach, arguing that repeated bailouts underscore the fragility of the UK’s manufacturing base.
While ministers have stressed that outright nationalisation remains a last resort, the move places SSUK alongside Scunthorpe as a test case for the government’s new steel policy. The immediate priority will be maintaining operations and stabilising employment. The longer-term question is whether private investors will step forward to secure the future of one of Britain’s last remaining specialist steelmakers.
