UK plans to acquire third-largest steelmaker as industry struggles
(Alliance News) - The UK government announced plans on Monday to acquire the country's third-largest steelmaker, after taking temporary ownership of the group last year amid an industry downturn.
The announcement of the takeover of Speciality Steel UK came two months after the government nationalised British Steel, taking control from Chinese firm Jingye to avert the shutdown of the country's last factory that can make steel from scratch.
"We do not intervene in private companies lightly. But nor can we simply stand aside and allow the future of this company and over 1,300 jobs to be decided by default," Business Secretary Jonathan Reynolds said in a statement.
"Working towards public acquisition will keep options open while we work...to determine the best long-term future for these sites," he added.
UK steel production, as in much of the world, has been buffeted by oversupply widely blamed on Chinese producers that has pushed down prices.
US President Donald Trump's imposition of tariffs on steel imports into the US has also hit the sector.
The government took temporary control of Speciality Steel in August 2025 after it entered liquidation.
The company is part of Liberty Steel, controlled by Indian-British businessman Sanjeev Gupta.
"Throughout that process, the government's clear preference was to secure a credible private-sector solution," a government statement said.
"A lead bidder was identified earlier this year, but after detailed due diligence and extensive discussions, the government has now concluded the proposal on the table could not provide the long-term stability," it added.
The company produces specialist steel for the aerospace, defence and advanced manufacturing sectors.
source: AFP
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