The UK government contemplates a bailout for another major steel mill | Steel sector support

Ministers are exploring options to assist Speciality Steel UK, part of the Liberty Steel Group owned by Sanjeev Gupta, in the event its parent company enters administration following a crucial court case next week. Business Secretary, Jonathan Reynolds, is considering government support to prevent potential closure of the company, which has plants employing 1,450 people in Rotherham and Sheffield. This potential intervention follows the government’s previous move to take control of the similarly troubled British Steel plant in Scunthorpe. Reynolds has not ruled out taking full control and suggests that state intervention could be necessary to protect jobs and strategically important assets. Government spokespeople affirm that they are monitoring the situation closely and hope Liberty Steel will continue on a sustainable basis. The Labour politicians in South Yorkshire are pushing for more support, given the plants have incurred significant losses and have not produced anything for a year due to financial constraints. Meanwhile, Gupta is in advanced talks with a major investor while fighting control battles over his metals empire, GFG Alliance, which faced financial pressure after the collapse of Greensill Capital in 2021. Union leaders are concerned about the future and call for government intervention to protect jobs if the worst happens. Reynolds has indicated that government funding might be more likely if Gupta loses control. The ongoing situation has sparked discussions about the government’s industrial strategy and the need for favourable trade conditions to support the steel sector’s demand for SSUK’s high-grade products. Industry sources suggest that, if needed, the government could replicate its strategy from when British Steel’s Scunthorpe site was at risk, by appointing an official receiver to manage operations while seeking a buyer.

Source: https://www.theguardian.com/business/2025/jul/11/uk-government-considers-rescue-package-for-second-major-steel-plant