The Government has taken control of Speciality Steel, the UK’s third largest steelworks, to safeguard around 1,450 jobs. The High Court ruled on Thursday that Speciality Steel, formerly part of Sanjeev Gupta’s Liberty Steel group, would enter compulsory liquidation. The site will be placed under the Official Receiver with special managers from the advisory firm Teneo. The government will meet ongoing wages and running costs while a buyer is sought.

Staff and management have criticised the decision. Jeffrey Kabel, chief transformation officer at Speciality Steel, said the move to liquidate was irrational and argued that a plan from Liberty’s parent company could have secured fresh investment, protected jobs and created a sustainable platform with independent oversight. GFG Alliance said it intends to bid to regain control alongside debt and equity partners and present this to the Official Receiver.

The government said staff and local communities will be supported as the Official Receiver carries out duties. UK Steel director general Gareth Stace welcomed the government’s recognition of the assets and said a new owner is needed quickly to restore production. The Community union said it needs clarification for its members and urged that jobs be protected and production resume promptly. Shadow business secretary Andrew Griffith attributed the situation to high energy costs linked to net-zero policies.