The government is developing plans to nationalise Speciality Steel UK (SSUK), the UK's third-largest steelworks, Business Secretary Jonathan Reynolds told the House of Commons.
SSUK operates sites in Rotherham, Stocksbridge and Wednesbury. The company, which employs about 1,300 people, has had production paused for several months with staff placed on furlough on reduced wages.
Government takeover decision
The government initially took control of SSUK, previously part of Liberty Steel, last year after it was forced to liquidate by the High Court.
A private bidder came forward earlier this year, but the government decided against supporting the proposal, citing "serious concerns" over the proposed financing and "protections for UK taxpayers".
Reynolds said the government faced a choice: allow the liquidation process to continue and risk losing influence over the sites' future, or act by developing a public acquisition proposal.
Future plans and assessment
The government will engage with the official receiver sale process and develop a proposal for public acquisition of SSUK to "preserve strategic control" and consider future opportunities.
Reynolds said future decisions and spending commitments would be "subject to detailed due diligence and funded from existing government budgets".
In a statement to workers, Reynolds said: "I will do all I can to secure a bright future for you, your communities and your families."
