UK’s third-largest steelworks collapses into government control

The UK’s third-largest steelworks has been placed under government control, creating an uncertain future for nearly 1,500 workers in Rotherham and Sheffield.

Insolvency courts granted a compulsory winding up order sought by creditors owed hundreds of millions of pounds by Speciality Steels UK (SSUK) – part of the metals empire of controversial tycoon Sanjeev Gupta.

The company will now be placed in the hands of the Official Receiver and special managers from consultancy firm Teneo, which has been appointed to run it on behalf of the liquidator.

The government has agreed to cover the ongoing wages and costs of the plant while a buyer for is sought.

Liberty Steel said the decision to put the firm into compulsory liquidation was “irrational”.

Chief transformation officer Jeffrey Kabel said the move would “impose prolonged uncertainty and significant costs on UK taxpayers for settlements and related expenses, despite the availability of a commercial solution”.