The UK government has announced plans to nationalise Speciality Steel UK (SSUK), a steelworks with sites in South Yorkshire and the West Midlands, to protect the jobs of its 1,300 workers. Business Secretary Jonathan Reynolds told MPs the government would 'work towards' acquiring the company, citing 'serious concerns' over a proposed private sector bid and the need to 'preserve strategic control'.

SSUK, which was previously part of Liberty Steel, fell into administration last year after being declared 'hopelessly insolvent' by a High Court judge. The government has been funding the wages of its workers, costing £3.5m a month, since then. Production at the plant has been paused for several months, with staff put on furlough on reduced wages. Reynolds said the government would 'engage with the official receiver sale process' and 'develop a proposal for the public acquisition of SSUK' to 'ensure that all credible future opportunities can be properly considered'.

The Norwegian steel startup Blastr Green Steel had been in talks to buy SSUK but expressed disappointment with the government's decision. A Blastr spokesperson said the company had a 'fully-funded proposal' ready to complete within 12 weeks, at 'no cost to the British taxpayer'. The government's preference was for a private sector buyer, but officials said the proposed deal could not provide the 'desired long-term stability' for SSUK.

Reynolds said the move was not 'ideological' but rather a response to the 'legacy of neglect' by the previous Conservative government. The government has committed to spending up to £2.5bn on the steel industry through the national wealth fund, with £500m allocated to converting Tata Steel’s blast furnaces into electric arc furnaces. SSUK is the largest producer of 'green steel', made using less-polluting electric arc furnaces, and is described as a 'strategic asset' for the UK.

The South Yorkshire mayor, Oliver Coppard, welcomed the government's intervention, calling it 'the next important step forward' for the region's steelmaking communities. Roy Rickhuss, general secretary of the Community union, also welcomed the move but noted the 'lack of a credible buyer' was 'a disappointing outcome'. He warned that without SSUK, the UK would be 'entirely reliant on foreign suppliers' for critical inputs to its energy infrastructure and advanced manufacturing base.

What remains unknown is the exact cost of the government's acquisition, the timeline for the process, and the specific details of the proposed public acquisition. The government has stated that future decisions and spending commitments will be 'subject to detailed due diligence and funded from existing government budgets'. No further information was provided on the potential role of local leaders, workers, or industry stakeholders in shaping the future of the sites.