Summary
The UK government is planning to take control of the third largest steelworks in the country, Speciality Steels UK (SSUK), to protect 1,500 jobs and keep the steel production running. The company faces financial troubles due to unpaid debts and the collapse of its main lender. A court will decide the company's future while negotiations for new funding are ongoing.
Key Facts
- The UK government is preparing to take over Speciality Steels UK (SSUK) to save jobs and continue operations.
- SSUK, owned by Liberty Steel, operates in South Yorkshire and uses scrap metal to make steel.
- The company's financial problems include unpaid debts and an inability to purchase necessary materials after its main lender collapsed.
- SSUK has the UK's only electric arc furnaces, which are more energy-efficient for steel production.
- Creditors have asked the court to liquidate SSUK to sell its assets and recover debts.
- Sanjeev Gupta, chairman of GFG Alliance, still seeks to manage administration to sell the company without government intervention.
- The High Court is reviewing the case to decide on a potential government takeover.
- Previous government intervention in the steel industry, like the 2019 Scunthorpe case, has been costly.
