State Takes Control of Speciality Steel to Protect 1,450 Jobs

The government has taken control of the UK's third-largest steelworks as ministers try to protect 1,450 jobs after Liberty Steel's operations in South Yorkshire were put into administration.

- Jasper Jolly

Yesterday, the high court in London ordered the winding up of Speciality Steel UK (SSUK), which has plants in Rotherham and Stocksbridge, despite the company's request for more time to find new financial backers.

The company, previously part of metals tycoon Sanjeev Gupta's Liberty Steel group, was then put under the control of the government's official receiver, who appointed special managers from the advisory firm Teneo to run it.

The judge, Mr Justice Mellor, said there was too much uncertainty over Gupta coming up with funding. "It is quite clear that there are special managers lined up who have the support of the government," he said. "I consider by far the preferable approach is to make a winding-up order."

The steelworks and its workers have been described by Jonathan Reynolds, the business secretary, as important strategic assets for the UK.

The government has said it had received approaches from "independent third parties who have expressed an interest in returning some or all of the sites to steelmaking," according to a letter from the Department for Business and Trade entered in court.

It also indicated that it hoped for a buyer who would restart production at Rotherham, where no products have been made for a year.