Sarah Champion Responds to Government Statement on Future of Speciality Steel UK
Sarah Champion MP has warmly welcomed the Government’s announcement that it is working towards the public acquisition of Speciality Steels UK (SSUK). The Government has been seeking a buyer for the business following its collapse into liquidation in the face of financial issues with its former parent company, Liberty, and its owner, Senjeev Gupta. An insolvency court ordered the business into controlled liquidation, with the Government agreeing to fund ongoing costs and wages whilst a buyer is sought.
In a statement to the House of Commons today, the Secretary of State for Business, Innovation, Science and Trade, Jonathan Reynolds, announced that after detailed due diligence and extensive discussions the Government has concluded the proposal on the table could not provide the long-term stability, certainty and value for money that workers, communities and taxpayers deserve.
Reacting to the Government’s statement, Sarah said:
“It is of course deeply disappointing that Speciality Steel UK remains in administration. I thank the Government for seeing the potential in this key industry. However, Rotherham steel workers deserve clarity about what the future holds and are, I know, keen to return to work as soon as possible.’
‘The cycle of failed ownership has held Specialty Steel back for far too long. I’m relieved the Secretary of State recognises this is a business with huge potential as a world leader in specialist steel products, with a strong track record and a skilled, experienced workforce.’
‘I welcome the Government’s announcement that it will work with the Official Receiver, myself, local leaders and the South Yorkshire Mayor towards public acquisition, while assessing all options for the company’s future.’
‘Whatever ownership model is ultimately decided, Speciality Steel needs leadership with the vision and commitment necessary to enable the business to fulfil its potential.”
Since SSUK entered liquidation, the Government has funded employee wages and supported the maintenance of the sites, helping protect jobs and giving the business the best possible chance of a sustainable long-term future.
Sarah said:
“The Labour Government has demonstrated its commitment to the UK steel industry since its very first days in office. From its resolute action to safeguard raw steel production in Scunthorpe, to its landmark Steel Strategy, which sets out unprecedented backing for the industry, Labour has shown time and time again that it is on the side of British steel businesses.’
‘I am proud to see that same commitment and focus given to safeguarding Speciality Steels UK, to protecting jobs in Rotherham and to continuing our long history of steel manufacture into a prosperous, successful future.’
‘I will be following discussions closely and will always speak up for Rotherham steel workers.”
Notes to Editors:
Sarah’s comments to the Secretary of State can be found HERE