Picture courtesy of BBC/Spencer Stokes

 

The UK's third-largest steelworks has crashed under government control, posing an uncertain future for nearly 1,500 workers in Rotherham and Sheffield. Creditors, owed hundreds of millions, pushed through a compulsory winding-up order against Speciality Steels UK (SSUK), part of Sanjeev Gupta's Liberty Steel empire.

 

Now, the fate of the company lies in the hands of the official receiver and consultancy firm Teneo, as the government chips in to cover ongoing wages and plant costs while searching for a buyer. Liberty Steel's Jeffrey Kabel expressed deep disappointment, claiming they were the best for the job, having invested significantly in the company.

 

Gupta’s attempts for a four-week adjournment to place SSUK in "pre-pack administration" failed, thwarting plans to reacquire the business with backing from investment giants BlackRock and Fidera. Citing the company’s insolvency, a judge noted its dire finances—£600,000 in the bank against a £3.7 million monthly wage bill. Lawyer Ryan Perkins argued that UK steelmaking would benefit from selling the company's assets through independent special managers.

 

The Department for Business and Trade disclosed interest from third parties in revisiting steel production on the sites, matching government aims for rejuvenation. The issues faced by Liberty Steel Group followed Greensill Capital's collapse, which left billions owed to investors, including UBS and Citibank. Gupta's plan to buy back SSUK would have reduced its debt burdens significantly.

 

The government now bears the operational and financial risks for SSUK, which has hardly produced steel for over a year. Financial chaos surrounds Liberty Steel, as its Singapore-based parent is also embroiled in insolvency. Despite setbacks, the government stated its support for the future of the UK steel industry, echoing past interventions like British Steel's Scunthorpe plant takeover, reported the BBC.

 

The steel sector grapples with high energy costs, cheaper foreign imports, and US export tariffs initiated under Trump. Reflecting industry woes, the GMB union lamented the situation as another "tragedy for UK steel". Workers, some on partial furlough, await clarity on pay and pensions, eager to restart steel production.

 

  Adapted by ASEAN Now from BBC 2025-08-22

 

And Trump's 25% tariff certainly won't help. Of course, it won't prevent some of our British RW posters from lauding Trump! 🙂

3 minutes ago, candide said:

And Trump's 25% tariff certainly won't help. Of course, it won't prevent some of our British RW posters from lauding Trump! 🙂

Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump

43 minutes ago, Yellowtail said:

Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump

Deflect deflect deflect etc... 

1 hour ago, Yellowtail said:

Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump Trump

Maybe this is why:

 

7 hours ago, webfact said:

The steel sector grapples with high energy costs, cheaper foreign imports, and US export tariffs initiated under Trump.

 

4 minutes ago, Chomper Higgot said:

Maybe this is why:

 

 

Thank the left for the high energy costs and cheaper foreign imports, and the US does not have export tariffs, tariffs are only applied to imports. 

 

I think UK steel exports to the US represent 5-10% of UK steel production in 2024, and I think they are on track for a similar volume in 2025. 

 

But  Trump Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump  

2 hours ago, Yellowtail said:

Thank the left for the high energy costs and cheaper foreign imports, and the US does not have export tariffs, tariffs are only applied to imports. 

 

I think UK steel exports to the US represent 5-10% of UK steel production in 2024, and I think they are on track for a similar volume in 2025. 

 

But  Trump Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump   Trump  

UK dominantly exports high grade steel to the U.S. so the impact on this type of steel production (around 20% of steel production) is significant.

But deflect deflect deflect....😆

4 minutes ago, candide said:

UK dominantly exports high grade steel to the U.S. so the impact on this type of steel production (around 20% of steel production) is significant.

But deflect deflect deflect....😆

I think it's closer to 5% than 20%, and still, there is no evidence that shipments are down significantly this year. 

There is another reason, it is in the name, specialty steel, the government is now committed to increasing defense spending, to do that it needs steel it does not want to import steel to make all these new armaments, also the steel would be used for things like the new proposed nuclear power stations.

So it looks like the government will take it on, most UK taxpayers will not be happy at subing a loss-making industry, it is like history repeating itself from the 1960's and 1970's loss-making government industries. Coal, steel, railways ect.

Back in the spring they took on the Scunthorpe steel works, almost reminds you of Labour of the old days, keeping factories open just to keep people in work.

The big question is would the Tories have done the same thing?

47 minutes ago, Yellowtail said:

I think it's closer to 5% than 20%, and still, there is no evidence that shipments are down significantly this year. 

Uk exports to the US dropped by 25% in Q2. It is unlikely that the most tariffed category has been spared...

16 minutes ago, kickstart said:

There is another reason, it is in the name, specialty steel, the government is now committed to increasing defense spending, to do that it needs steel it does not want to import steel to make all these new armaments, also the steel would be used for things like the new proposed nuclear power stations.

So it looks like the government will take it on, most UK taxpayers will not be happy at subing a loss-making industry, it is like history repeating itself from the 1960's and 1970's loss-making government industries. Coal, steel, railways ect.

Back in the spring they took on the Scunthorpe steel works, almost reminds you of Labour of the old days, keeping factories open just to keep people in work.

The big question is would the Tories have done the same thing?

'If it wasn't for the Nips
Being so good at building ships
The yards would still be open on the Clyde'

 

(The Post War Dream
by Pink Floyd)

1 minute ago, candide said:

Uk exports to the US dropped by 25% in Q2. It is unlikely that the most tariffed category has been spared...

So, 25% X 5% = 1.25%

5 hours ago, candide said:

And Trump's 25% tariff certainly won't help. Of course, it won't prevent some of our British RW posters from lauding Trump! 🙂

Did you read the enitre article?

 

The government now bears the operational and financial risks for SSUK, which has hardly produced steel for over a year. 

 

It appears that this business is not sustainable, and Trump has no involvement in it. 

14 minutes ago, Yellowtail said:

So, 25% X 5% = 1.25%

1.25% of what? 

10 minutes ago, TedG said:

Did you read the enitre article?

 

The government now bears the operational and financial risks for SSUK, which has hardly produced steel for over a year. 

 

It appears that this business is not sustainable, and Trump has no involvement in it. 

The OP is about the future of the company, what can be saved and how. Trump's tariffs won't help to convince investors to save it ( or part of it). Don't you think so?

3 minutes ago, candide said:

Don't you think so?

No...

8 minutes ago, candide said:

1.25% of what? 

UK steel production

17 minutes ago, Yellowtail said:

UK steel production

You're not good at math. But you could have a try at numerology! 

5 minutes ago, candide said:

You're not good at math. But you could have a try at numerology! 

You are welcome to correct me. 

10 minutes ago, Yellowtail said:

You are welcome to correct me. 

To start with it's not 5%, it's 9% in value. Then 25% is for all goods. Steel being struck with the highest tariff, it's likely more than 25%.

1 hour ago, candide said:

The OP is about the future of the company, what can be saved and how. Trump's tariffs won't help to convince investors to save it ( or part of it). Don't you think so?

This is not a USA problem.  This is a problem of an old outdated mill.  

1 hour ago, TedG said:

This is not a USA problem.  This is a problem of an old outdated mill.  

Of course, but tariffs are making it worse.

Ah yes the famous Mr  Gupta .

Camerons best mate .

10 hours ago, candide said:

To start with it's not 5%, it's 9% in value. Then 25% is for all goods. Steel being struck with the highest tariff, it's likely more than 25%.

So, there was nothing wrong with my math, I thought not.

 

What's 9% in value? 

 

It's 25% for steel as well. 

7 hours ago, Yellowtail said:

So, there was nothing wrong with my math, I thought not.

 

What's 9% in value? 

 

It's 25% for steel as well. 

9% in value (£). This particularly relevant as UK exports dominantly high grade steel which is more expensive than plain steel. So the share of exports in value (revenue) is higher than the share of exports measured in volume. It also means that tariffs disproportionately affect the most profitable product lines.

Is this theThai owned one  that went bust about 10 yrs ago and was bailed out  for pennies on the dollar at the 12th hour ?

3 minutes ago, Ralf001 said:

Is this theThai owned one  that went bust about 10 yrs ago and was bailed out  for pennies on the dollar at the 12th hour ?

The Thai owned steel works were at Redcar,  this company is Liberty steel which is a specialist steel company which used scrap metal to make steel, as a taxpayer we all own it now, the owner mr Gupta i doubt is not worried

1 minute ago, howerde said:

The Thai owned steel works were at Redcar,  this company is Liberty steel which is a specialist steel company which used scrap metal to make steel, as a taxpayer we all own it now, the owner mr Gupta i doubt is not worried

 

Ahh ok, thanks for clarifying.