Government moves to nationalise Speciality Steel UK to protect 1,300 jobs
Summary
The UK government is taking control of Speciality Steel UK (SSUK) to protect 1,300 steel industry jobs. SSUK, which makes low-pollution "green steel," fell into financial trouble last year, and a private sale did not work out.Key Facts
- The government plans to take over SSUK, which has steel plants in South Yorkshire and the West Midlands.
- SSUK entered insolvency last year and has been run by government officials since then.
- The steelmaker is known for producing "green steel" using electric arc furnaces that pollute less.
- Blastr Green Steel, a Norwegian company, was the main potential buyer but failed to complete a deal by the deadline.
- The government has been paying £3.5 million per month to keep worker wages while steel production is paused.
- SSUK’s financial problems worsened after its main lender, Greensill Capital, collapsed in 2021.
- The government prefers a long-term, stable solution and rejects ideological reasons for the takeover.
- Local leaders and politicians welcome the government's action as support for industrial communities.
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