UK government seeks to acquire insolvent specialist steelmaker

LONDON, Sept 14 (Reuters) - Britain's government said on Monday it was drawing up a plan to purchase Speciality Steel UK, a manufacturer that has previously supplied the auto, aero and defence industries, and which entered liquidation in August 2025.

Before entering liquidation, Speciality Steel was part of Liberty Steel, owned by commodities tycoon Sanjeev Gupta.

The government said it was moving towards public ownership after deciding it could not support a proposed private sector bid for the company, which has sites in northern and central England and supports more than 1,300 jobs.

"We do not intervene in private companies lightly. But nor can we simply stand aside and allow the future of this company and over 1,300 jobs to be decided by default," business minister Jonathan Reynolds said.

"Working towards public acquisition will keep options open while we work with local leaders, workers, industry and investors to determine the best long-term future for these sites."

The government said any purchase was subject to due diligence and would be funded from existing government budgets. It did not set out how much the acquisition could cost.

(Reporting by William James)