Business leaders welcome proposed nationalisation of Speciality Steel UK

Business leaders have welcomed news of the government’s plan to nationalise the UK’s third largest steelworks which has a site in the Black Country.

Speaking in the Commons on Monday (September 14) Business Secretary Jonathan Reynolds announced the government has proposed a public acquisition of Speciality Steel UK which has a site in All Saints Road, Wednesbury.

He said ministers were engaging with the sale process of the company, which manufactures special steel products from recycled scrap and metal alloys to service the aerospace, defence, energy, and engineering markets.

Mr Reynolds said the government was developing a proposal to save the steelworks after deciding it could not support a private bid to take over the business which also has sites in Stocksbridge and Rotherham, South Yorkshire.

The state’s Official Receiver took control of Speciality Steel last August after it was forced to liquidate by the High Court and production has been on pause since.

The business employs around 1,300 people in total - many of whom have been furloughed with reduced wages.

The government’s proposal to nationalise the company could be good news for workers at the Wednesbury plant - although little detail has yet been given about the plan.

Stephen Morley, president of the Confederation of British Metalforming (CBM) - which represents 200 members and 75,000 employees involved in the production of fasteners, forgings, sheet metalwork and cold rolled products, said of the news: “The CBM welcomes the government intervention to support Speciality Steel UK.

“Not only does it potentially protect the jobs of the 1,300 people employed there but it also helps to protect domestic steel making in these uncertain geopolitical times.

“From talking to our members, the downstream supply chain also welcomes this move. If the deal is successful, it should help companies gain additional security that they will have access to the material required, tariff free, to meet current and future volumes.”

Black Country Chamber of Commerce chief executive Sarah Moorhouse also welcomed the proposal.

She said: “This could be really good news for those employed at Speciality Steel UK in Wednesbury but also for the wider economy across the Black Country.

“It is a positive move to see the government has stepped in to plan for this takeover, to preserve vital jobs in the Black Country.

“The foundation of a strong and stable economy is having people in employment, and we cannot afford to lose sites such as this which are of significant national importance. The impact on people’s lives and the wider region is too great.

“It has been a testing time for the workers at Wednesbury with production having been paused some time ago, and staff put on furlough.

“We still need to see more detail of the government’s overall plans for the business, but if this nationalisation saves jobs, then it is very much welcomed.”

Antonia Bance MP, whose constituency includes Wednesbury, said: “It’s really good news for the workers.

“They’ve been furloughed for a year or so while the company has been in receivership. I’m reassured that ministers are looking at the Wednesbury site.

“I don’t know any of the details yet but it’s really good news.”

She said she hopes to hear more about the deal within the coming months.

Stourbridge MP Cat Eccles also welcomed the “positive announcement” from the minister, saying: “Downstream businesses in Stourbridge, Brierley Hill and Netherton used to source many items from Speciality Steel UK.”