Preferred bidder identified for Speciality Steel UK

UK’s third largest steelworks moves closer to sale after Official Receiver agrees exclusivity period with preferred bidder for former Liberty Steel business

Britain’s third largest steelworks has edged closer to a sale following Government intervention after it went into liquidation last year.

Last August, the state’s Official Receiver assumed control of Speciality Steel – formerly part of Sanjeev Gupta’s Liberty Steel empire – after it was forced to liquidate by the High Court.

On Wednesday, the Official Receiver, an arm of the Insolvency Service, confirmed it has entered into an exclusivity agreement with a “preferred bidder” for Speciality Steel UK (SSUK). The identity of the bidder has not been disclosed.

The Official Receiver stated that the process, designed to secure a formal sale, is anticipated to take approximately five weeks as the preferred bidder advances with their offer.

Output at the business, which operates sites across Stocksbridge and Rotherham in South Yorkshire, and Wednesbury in the West Midlands, has been suspended in recent months.

Speciality Steel employs around 1,300 workers, a significant number of whom have been placed on furlough with reduced wages.

Roy Rickhuss, general secretary of the Community union, said: “This is an important moment, and we hope that this milestone – following on from the Government’s intervention last autumn – will help end the long period of uncertainty which our members at SSUK have endured.

“We look forward to meeting with the preferred bidder as soon as possible to hear more about their plans for securing jobs and investing in the business.

“SSUK’s sites are vital strategic assets, and with the right plan in place the business can have a bright future.”