The UK government said Thursday that it would take temporary ownership of the country鈥檚 third-largest steelmaker, putting its 1,450 jobs at risk.
The nationalisation of Speciality Steel comes four months after the government rescued Chinese-owned British Steel, to avert the shutdown of the country鈥檚 last factory that can make steel from scratch.
Speciality Steel is part of Liberty Steel, controlled by Indian-British businessman Sanjeev Gupta.
An independent administrator has been named to seek a buyer for Speciality and save its jobs.
鈥榃e remain committed to a bright and sustainable future for steelmaking and steelmaking jobs in the UK,鈥� a government spokesman said in a statement to AFP.
Liberty Steel denounced an 鈥榠rrational鈥� decision after a court rejected its plan to maintain operations at Speciality, whose debt pile has mounted to hundreds of millions of pounds.
In a statement, the steelmaker鈥檚 parent company, GFG, said it would 鈥榥ow continue to advance its bid for the business in collaboration with prospective debt and equity partners and will present its plan to the official receiver鈥�.
鈥楪FG continues to believe it has the ideas, management expertise and commitment to lead SSUK into the future and attract major investment.聽GFG鈥檚 other significant business interests in the UK remain unaffected,鈥� it added.
UK steel production, as in much of the world, has been buffeted by over-supply widely blamed on Chinese producers that has pushed down prices.
President Donald Trump鈥檚 imposition of new tariffs on US steel imports has also hit the sector.
Britain has become a relatively small producer at just 5.6 million tonnes annually, with the sector ensuring around 37,000 jobs.
