UK Government Takes Control of Speciality Steel, Protects 1,450 Jobs amid Insolvency

The UK government has taken control of Speciality Steel UK, the nation’s third-largest steelmaker formerly part of Sanjeev Gupta’s Liberty Steel group, after the High Court ordered its compulsory liquidation due to insolvency concerns. This intervention aims to protect 1,450 jobs at plants in Rotherham and Stocksbridge, with the government covering wages and operational costs during the search for a new buyer. Special managers from advisory firm Teneo have been appointed to assist the Official Receiver in managing the liquidation process. However, the decision has faced strong criticism from Jeffrey Kabel, Speciality Steel’s Chief Transformation Officer, who called the liquidation "irrational," arguing that GFG Alliance, Gupta’s parent company, had a viable rescue plan supported by major investors that could have secured new investment and safeguarded jobs. Government officials emphasized their commitment to a sustainable future for UK steelmaking and assured support for employees and local communities amid the uncertainty. The case highlights ongoing challenges in the UK steel industry, including the impact of energy costs and the need for strategic government intervention.