Preferred bidder identified to take control of Speciality Steel

The UK’s third largest steelworks has moved closer to a sale after the Government intervened following its liquidation last year.

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

On Wednesday, the Official Receiver, part of the Insolvency Service, confirmed it has agreed a period of exclusivity with a “preferred bidder” for Speciality Steel UK (SSUK).

It has not disclosed the name of the bidder.

The Official Receiver said the process, aimed at securing a formal sale, is expected to last around five weeks as the preferred bidder progresses with their offer.

Production at the business, which runs sites across Stocksbridge and Rotherham in South Yorkshire, and Wednesbury in the West Midlands, has been on pause in recent months.

Speciality Steel employs around 1,300 workers, many of whom have been put 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.”