UK government to nationalize Speciality Steel to protect 1,300 jobs

The British government has announced its intention to nationalize Speciality Steel, the country’s third-largest steelmaker, to protect more than 1,300 jobs. The decision follows a lack of credible private sector buyout offers that could ensure long-term stability for the company.

Business Secretary Jonathan Reynolds stated that while the government does not intervene in private enterprises lightly, it could not allow the future of the company and its workforce to be decided by default. The move aims to keep all options open while collaborating with local leaders, employees, and investors to determine the best path forward for the sites in Rotherham, Stocksbridge, Brinsworth, and Wednesbury.

This intervention comes amid significant challenges for the global steel industry, including production overcapacity—often attributed to China—and the impact of US tariffs on exports. This announcement follows the recent nationalization of British Steel, previously owned by the Chinese Jingye Group, which was moved into public hands to protect national security and prevent the closure of the country’s last two operational coal-fired blast furnaces. Speciality Steel was previously under temporary government control in August 2025 following its liquidation after being part of Sanjeev Gupta’s Liberty Steel group.