New Zero policy kills yet another steel plant
The UK’s third-largest steelworks, Speciality Steels UK (SSUK), has been placed under government control, leaving nearly 1,500 workers in Rotherham and Sheffield uncertain about their future.
Creditors owed hundreds of millions of pounds by SSUK sought a compulsory winding up order through insolvency courts. This decision comes after the company’s failure to meet its financial obligations.
SSUK, part of the Liberty Steel metals empire led by controversial tycoon Sanjeev Gupta, uses scrap metal treated in electric arc furnaces to manufacture steel instead of iron ore and a blast furnace. However, the high cost of UK electricity has made their electric arc furnaces less energy-efficient than expected.
The government has agreed to cover the ongoing wages and costs of the plant while a buyer is sought. This decision adds to the taxpayer burden, as it is another bill for the government to cover.
This court decision follows the government’s takeover of management of British Steel’s Scunthorpe plant in April to prevent its Chinese owners from closing its blast furnaces.
The entire steel industry has been struggling with high energy prices, cheaper products from overseas, and the impact of 25% tariffs imposed by the Trump administration on US exports.
Following Thursday’s court decision, the GMB union expressed its dismay, calling it “another tragedy for UK steel.”
