Jobs in West Midlands could be saved with Government's plan to nationalise Speciality Steel UK

A Government plan for the public acquisition of Speciality Steel UK, the UK’s third-largest steelworks, should spell good news for workers at the company’s factory in the Black Country.

Speaking in the House of Commons on Monday (September 14) Business Secretary Jonathan Reynolds said ministers were engaging with the sale process of the company, which has a site in All Saints Road, Wednesbury.

Mr Reynolds said a bidder had come forward to take over SSUK earlier this year, but the Government could not support it and was instead developing its own proposal.

The state’s Official Receiver took control of Speciality Steel, previously part of Sanjeev Gupta’s Liberty Steel business, last August after it was forced to liquidate by the High Court.

Production at the business, which runs sites in Stocksbridge and Rotherham in South Yorkshire as well as Wednesbury in the West Midlands, has been on pause in recent months.

Speciality Steel, which manufactures special steel products from recycled scrap and metal alloys to service the aerospace, defence, energy, and engineering markets, employs about 1,300 people in total, many of whom have been furloughed with reduced wages.

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.

“So, having concluded that we cannot support the preferred bidder’s proposal, we are faced with a choice.

“We can allow events to take their course through the liquidation process and risk being left with no say in the future of these sites, or we can act.

“We will therefore engage with the official receiver sale process and develop a proposal for the public acquisition of SSUK.

“This will preserve strategic control and ensure that all credible future opportunities can be properly considered before irreversible decisions are taken.”

Mr Reynolds said the sites could play a vital role supporting the Government’s modern industrial strategy, having produced specialist steel for sectors including aerospace, defence and advanced manufacturing.

He said: “Working towards public acquisition will create the necessary time and space to undertake a full assessment of the opportunities available.

“It will let us consider future industrial use, regeneration opportunities and the role that specialist manufacturing capabilities could play in supporting growth and our national resilience.

“One option that will be assessed carefully is the future of speciality steel production, however, we are not prejudging the outcome of that assessment – all options will be considered rigorously against their economic and industrial benefits, their impact on regional growth and their value for money.

“And I should note that all future decisions and spending commitments will be subject to detailed due diligence and funded from existing Government budgets.”

In a message to workers, he said: “I will do all I can to secure a bright future for you, your communities and your families.”

Mr Reynolds added: “We want to attract private investment, we want to strengthen domestic supply chains and we want to ensure that industrial communities have a genuine opportunity to thrive in the decades ahead.”

First Secretary Louise Haigh said: “This Government refuses to be a passive observer to the decline of our critical industries and the loss of good jobs. Inaction is not an option.

“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.”