Lutnick: UK government just nationalized British Steel

Lutnick: UK government just nationalized British Steel

The UK government has taken control of Speciality Steel UK (SSUK), one of the nation's largest steelworks, following a High Court order that placed the company into compulsory liquidation. The move marks the second government intervention in the UK steel industry this year, following its earlier takeover of British Steel's Scunthorpe plant [1].

The High Court ordered SSUK, which employs around 1,450 people and operates factories in Rotherham and Stocksbridge, into compulsory liquidation due to its insolvency. The company was part of Liberty Steel, owned by commodities tycoon Sanjeev Gupta's family conglomerate, GFG Alliance [2]. The government has assigned the Official Receiver and financial consultants from Teneo to manage operations, ensuring that employees are paid and day-to-day costs are covered while efforts are made to find a buyer.

The government's intervention comes amidst concerns about the steel industry's future and the UK's reliance on steel imports. The government has expressed its commitment to supporting the industry and ensuring its long-term sustainability. However, the company's leadership has argued that the liquidation move was "irrational" and that a rescue plan presented by GFG would have secured new investment in the industry [2].

The move has been welcomed by industry bodies and unions, which see the steelworks as a strategic asset for the region. They hope that a new owner will bring in the investment needed to restore production and reduce reliance on steel imports [2].

The UK government's intervention in the steel industry reflects its growing willingness to step in when key manufacturing sectors face collapse. This move also highlights the government's commitment to supporting strategic industries and ensuring the UK's economic resilience [1].

References:
[1] Reuters. (2025, Aug 21). UK government takes over part of Liberty Steel after collapse. Retrieved from https://www.reuters.com/world/uk/uk-government-take-over-liberty-steel-division-after-collapse-2025-08-21/
[2] Business-Sale.com. (2025, Aug 22). UK government takes control of Speciality Steel after insolvency. Retrieved from https://www.business-sale.com/news/administration/uk-government-takes-control-of-speciality-steel-after-insolvency-228040