UK’s Third-Largest Steelworks Enters Liquidation Threatening 1,500 Jobs

The UK government has taken control of Speciality Steel UK, the nation's third-largest steelworks and part of Sanjeev Gupta's Liberty Steel group, after the High Court ordered a compulsory liquidation due to insolvency. The company, employing around 1,450 people in South Yorkshire, was described by the judge as "hopelessly insolvent" with only £600,000 in the bank against a monthly wage bill of £3.7 million, and owing creditors hundreds of millions of pounds. Official Receivers and special managers from consultancy firm Teneo have been appointed to manage the plant, with the government covering wages and operational costs while seeking a buyer. Speciality Steel's leadership criticized the liquidation decision as irrational, arguing that a plan backed by investment from BlackRock and others could have secured new investment and safeguarded jobs. Despite attempts by GFG Alliance to propose a 'pre-pack administration' to buy back assets and stabilize the business, the court declined to delay the liquidation. The government and industry representatives emphasized their commitment to supporting workers and ensuring the steelmaking future in the UK amid this period of uncertainty.