Government to take over Speciality Steel UK in move set to cost £350m
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Government → take → m
Mr Reynolds said a bidder had come forward to take over SSUK earlier this year, reported to be Norwegian firm Blastr Green Steel, but the Government could not support it and was instead developing its own proposal.
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Government → say → proposal
Blastr said it was not told in advance about the Government’s decision and that it had developed a “fully-funded proposal at no cost to the British taxpayer”.
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it → say → taxpayer
SSUK was placed into the control of the state’s Official Receiver last August, after it was forced to liquidate by the High Court.
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it → place → Court
Mr Reynolds said he expected the process of bringing it into public ownership to take around four to six months.
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process → say → months
He said the Government would “have to pay off the creditors”, acquire the assets and “inject some working capital over a period between one and three years”.
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Government → say → period
The Business Secretary continued: “I would anticipate the cost of that to be around £350 million.”
Asked by Liberal Democrat Treasury spokeswoman Daisy Cooper “where that money might come from”, Mr Reynolds replied the Government had not yet spent “the lion’s share” of £2.5 billion set aside for the steel industry, pledged in Labour’s 2024 manifesto.
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Government → continue → manifesto
Mr Reynolds said there was “nothing ideological” about the decision to acquire SSUK, adding: “I want this to be run in the private sector.
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this → say → sector
Speciality Steel employs about 1,300 people, many of whom have been put on furlough with reduced wages.
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many → employ → wages
Production at the business, which runs sites across Stocksbridge and Rotherham in South Yorkshire, and Wednesbury in the West Midlands, has been on pause in recent months.
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which → run → months
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Mr Reynolds said the Government had “serious concerns about the proposed financing” of a potential offer for SSUK.
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Government → read → SSUK
Mr Reynolds said: “We took a long, hard look at the offer that was on the table, but the truth is that we had serious concerns about the proposed financing of it, the protections for UK taxpayers, and whether it would be able to offer the long-term stability for the local economy and community.
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it → say → economy
The deal will “keep options open” for the business while working to determine the long-term future of its sites, he said.
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he → keep → sites
A spokeswoman for Blastr Green Steel said: “We are disappointed by the Government’s decision today concerning Speciality Steel UK, and we were not informed in advance.
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we → say → advance
“Over the course of several months, we have advanced our plans for a private sector solution to acquire SSUK and were today on site in South Yorkshire with investors and strategic partners.
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we → advance → investors
“We have a fully-funded proposal, at no cost to the British taxpayer, that is ready to complete within 12 weeks.”
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that → have → weeks
Trade unions said they welcomed the Government’s intervention after failing to find a credible buyer for SSUK.
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they → say → SSUK
Gareth Stace, UK Steel director-general, said: “This Government is once again stepping up to do what is needed for the UK steel industry.
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what → say → industry
“SSUK is already well on its way to returning to full operations and retaking its place at the heart of critical UK supply chains.
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SSUK → return → chains
“It is crucial that the custodian of this key strategic asset is the right owner and investor, with the expertise and long-term ambition that the dedicated workforce deserve.”
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workforce → deserve → that
Roy Rickhuss, Community Union general secretary, said it was a “disappointing outcome” that a private sector buyer had not been secured, but that the Government’s intervention was a “welcome move”.
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intervention → say → ?
“SSUK is a unique and integral component of the UK’s steelmaking capabilities, without which we would be entirely reliant on foreign suppliers for high-value speciality inputs to our critical energy infrastructure and our advanced manufacturing base including the defence industries,” he said.
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he → include → industries
First Secretary of State Louise Haigh said: “This Government refuses to be a passive observer to the decline of our critical industries and the loss of good jobs.
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Government → say → jobs
“Over the coming months, we will work with regional and local partners to agree a way forward that delivers for employees, the community and the country.”
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that → work → employees
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