Liberty Steel plants in South Yorkshire put into government-managed administration

The High Court ordered winding up of Speciality Steel UK as ministers move to safeguard 1,450 jobs.

UK government takes control of Liberty Steel plants in South Yorkshire

The High Court in London ruled that Speciality Steel UK would be wound up, despite Liberty Steel owner Sanjeev Gupta’s efforts to secure new funding. The government-appointed official receiver has placed SSUK under special managers from the advisory firm Teneo to run the plants in Rotherham and Stocksbridge as administrators seek buyers. The judge cited uncertainty over Gupta’s ability to finance a rescue and noted that government-backed managers will prioritize keeping the workforce paid while options are explored.

The government says SSUK remains a strategically important asset and that it has received approaches from independent parties interested in restarting steelmaking on the sites. The development comes as ministers have already stepped in to run British Steel’s Scunthorpe plant this year, signaling a broader push to safeguard UK steel capacity. Gupta’s attempt to pursue a pre-pack administration, funded by BlackRock, was not granted, and the focus now shifts to securing a viable buyer who can restart production at Rotherham and preserve jobs long term.

The case highlights how in crisis, state action can blend with private finance to protect critical industry. The government’s willingness to appoint managers and keep operations running short-term reflects a policy shift from relies on private rescue to direct intervention when strategic assets are at risk. Yet it also raises questions about the stability of private capital tied to Gupta’s network and the ongoing SFO investigations into Greensill financing and related transactions. The outcome will test whether the market can deliver a sustainable revival or if public funds will continually prop up assets with uncertain long-term viability.

Looking ahead, the market will watch whether any buyer offers a credible path to resumed production and durable jobs. If a buyer cannot be found, the risk of closures and community harm grows, challenging the government to balance economic duty with fiscal restraint. The episode could influence policy discussions on how to protect regional industry without subsidizing failed business models over the long term.

Highlights

The steel industry faces a critical test as the search for a sustainable future continues.