Thu, 21 Aug 2025

Thu, 21 Aug 2025 UK's third-largest steelworks collapses into government control

Hundreds of Liberty Steel workers in Rotherham and Sheffield face an uncertain future.

* Speciality Steels UK (SSUK), a subsidiary of Liberty Steel, has been placed under government control due to insolvency.
* SSUK will be managed by special managers appointed by the government and an official receiver, with the company's assets being sold off independently.
* The move creates uncertainty for nearly 1,500 workers at the Rotherham and Sheffield sites, who have not produced steel since July last year.
* The government has agreed to cover ongoing wages and costs while a buyer is sought.
* Liberty Steel had applied for a pre-pack administration, which would have allowed it to sell its assets to a bidder, but this was rejected by the court.
* SSUK's financial troubles are linked to the collapse of its main lender, Greensill Capital, which left it with debts of hundreds of millions of pounds.
* The government will now bear the operational and financial risks of the company, which has been accused of not publishing financial statements since 2019.
* The move has been welcomed by creditors, who argue that an independent sale process is in the best interests of the steel industry.
* Unions have expressed concerns about job security and pensions, with workers calling for guarantees on pay and pensions.
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