The official receiver assumed control of the Rotherham steelworks after the High Court approved a winding-up petition, forcing Speciality Steel UK (SSUK) into administration. The plant employs 1,500 workers and houses one of Britain's few "green" electric arc furnaces. The Labour government acted to safeguard jobs and stabilise production, but monthly wages of £4 million mean taxpayers will underwrite tens of millions in operating costs until insolvency specialists Teneo can find a buyer. The official receiver intends to reclaim costs through a sale. The intervention increases state control of UK steel amid recent takeovers and subsidies, and unions demand clarity on job security. The collapse represents a further setback for Sanjeev Gupta and his Liberty Steel business, which expanded after 2010 with finance from Greensill Capital before Greensill's collapse.
On Thursday, the official receiver stepped in to take charge of the Rotherham steelworks in South Yorkshire after the High Court approved a winding-up petition from creditors. The ruling forced Gupta's Speciality Steel UK (SSUK) into administration, raising the prospect of closure for a plant that employs 1,500 workers and is home to one of Britain's few "green" electric arc furnaces.
The Labour government said it acted to safeguard jobs and stabilise production, but the move comes at significant cost. Monthly wages at the site total £4 million, meaning taxpayers will fund tens of millions of pounds in operating expenses until insolvency specialists Teneo can secure a private buyer. The official receiver, an independent arm of government, has stressed it intends to reclaim these costs through an eventual sale.
Collection
[
|
...
]