One of Britain’s largest steel plants has been forced into government control after collapsing under the weight of debts, leaving the future of nearly 1,500 workers in South Yorkshire hanging in the balance. A High Court judge ordered Speciality Steels UK (SSUK), part of Sanjeev Gupta’s Liberty Steel, to be wound up after creditors pressed for repayment of hundreds of millions of pounds. The ruling means the government will now take temporary responsibility for the business, paying wages while a buyer is sought. For the steel towns of Rotherham and Sheffield, it marks yet another period of uncertainty in an industry that has been shrinking for decades.
Government Steps In
The court appointed the Official Receiver to oversee SSUK, supported by consultancy firm Teneo, which will manage day-to-day operations. Ministers confirmed they will cover the wage bill and other running costs to prevent an immediate collapse. South Yorkshire mayor Oliver Coppard welcomed the intervention, calling it “good news” that government had ended the limbo for workers. But he warned that the real challenge lies ahead: ensuring the plants survive long enough to secure “the brightest possible future” under new ownership. The move follows similar action in April, when British Steel’s Scunthorpe works were also placed under state control.
Why Liberty Lost Control
Executives at Liberty Steel reacted with dismay. Jeffrey Kabel, the group’s chief transformation officer, said the company had invested heavily over the past decade and was best placed to run the business. Gupta’s lawyers had asked for more time to arrange a “pre-pack” administration — a mechanism that would have allowed SSUK’s assets to be sold quickly to new investors, including BlackRock and Fidera, with Liberty buying them back. Creditors objected, saying this would simply wipe out debts. The judge sided with them, noting SSUK had just £600,000 in its accounts against a £3.7m monthly wage bill, and describing the business as “hopelessly insolvent.”
The Financial Fallout
SSUK’s difficulties have been mounting since the 2021 collapse of Greensill Capital, Liberty Steel’s main lender. Greensill’s implosion left Gupta’s metals empire billions of pounds in debt, with 15 associated firms still tied up in insolvency proceedings worldwide. Court filings revealed SSUK has not published accounts since 2019 and that its Singapore-based parent company is itself in financial distress. Creditors, represented by lawyer Ryan Perkins, argued that an independent sale overseen by government would give the steelworks a better chance of survival than handing control back to Gupta’s administrators.
The Human Cost
On the ground, the ruling deepens the strain on employees who have endured months of uncertainty. The Rotherham plant has not produced steel since July 2024, with most staff on reduced pay. Chris Williamson, a union rep with 25 years at the site, said workers are desperate for stability: “We just want certainty and to start producing steel again.” Many employees have been receiving only 85% of their normal wages. The GMB union called the ruling “another tragedy for UK steel,” warning that without long-term government support, communities in Yorkshire and beyond risk losing one of their last major industries.
A Wider Industry in Trouble
The collapse of SSUK comes at a difficult moment for the wider sector. High energy costs, cut-price imports and the after-effects of US tariffs have battered Britain’s steelmakers. Analysts say the UK must maintain its own production capacity, not only for jobs but for national security, especially in defence manufacturing. Fund manager George Godber described it as a “strategic imperative.” Labour has pledged to publish a new steel strategy later this year aimed at safeguarding primary production. For now, ministers face the immediate challenge of keeping the Rotherham and Sheffield plants running until a buyer emerges.
The government’s takeover of SSUK buys time, but it also underlines the fragility of British steelmaking. For thousands of families in South Yorkshire, the key question is whether jobs and production can be saved. For ministers, the decision sets the stage for a bigger fight: whether Britain can preserve a domestic steel industry in the face of global competition and decades of financial mismanagement.
