UK Government Nationalizes Speciality Steel UK to Save 1,300 Jobs

The Government of the United Kingdom announced plans on September 14, 2026, to bring Speciality Steel UK into public ownership. Business Secretary Jonathan Reynolds estimated the acquisition will cost approximately £350 million to cover working capital and creditor payments, with funding drawn from a £2.5 billion national wealth fund. The move aims to protect 1,300 jobs across sites in northern and central England, including facilities in Rotherham, Stocksbridge, Brinsworth, and Wednesbury.

Speciality Steel UK, the country's third-largest steelworks and a primary producer of green steel, entered liquidation in August 2025 following the collapse of its primary lender, Greensill Capital, and a winding-up order against former owner Sanjeev Gupta. Since then, the taxpayer has funded worker wages at a cost of £3.5 million per month while production remained paused. The government had previously nationalized British Steel in July and implemented tariffs on foreign steel to reduce import reliance.

Officials rejected a private sector bid from Norwegian startup Blastr Green Steel, citing concerns over financing and long-term stability. Blastr Green Steel expressed disappointment, claiming it had a fully-funded proposal that would cost taxpayers nothing and could have completed within 12 weeks. The acquisition process is expected to take four to six months and remains subject to due diligence.