The Government is serious about reindustrialising Britain, with the steel sector playing its part - Jonathan Reynolds
We’ve made a commitment to re-industrialise Britain – to bring good growth to every postcode of our country. And backing the proud communities of Stocksbridge, Rotherham, Wednesbury and Brinsworth is absolutely part of that commitment.
I know the firm’s 1,300 plus employees have endured a prolonged period of uncertainty. Many of them were already furloughed when the company entered liquidation in August of last year. For more than a year, our focus has been on trying to secure a private-sector solution.
We worked closely with the Official Receiver, engaged with interested buyers and gave serious consideration to the proposal that eventually came forward.
But government has a responsibility to taxpayers. After extensive scrutiny, we concluded the bid could not be supported on the terms proposed. We were not confident it would deliver the long-term stability that workers, communities and taxpayers deserve.
Having reached that point, we faced a choice. We could step back and allow events to take their course through the liquidation process, with the risk that the future of these important sites would effectively be decided by default. Or we could act.
That is why the Government has announced that it will develop a proposal for the public acquisition of SSUK.
This will preserve strategic control of their sites and ensure that future opportunities can be properly considered, before irreversible decisions are made. This is important because Speciality Steel UK offers unique capabilities. In the past, it has furnished manufacturers in aerospace and defence with steel which can’t easily be forged elsewhere, especially in Britain.
So, working with Mayor Oliver Coppard, the South Yorkshire Combined Authority, industry experts, workers, and private investors, we will write a new chapter for this steelmaking firm.
We are keeping all options on the table.
Crucially, central government won’t make that decision alone. We’ve promised to do things differently. We’ve pledged to work with - not against - local communities who are tired of their fate being decided hundreds of miles away in Whitehall.
This government is unapologetic about moving to protect a national steelmaking asset. Steel underpins critical supply chains and supports thousands of skilled jobs across the United Kingdom, not least here in Yorkshire. It remains fundamental to our economy, our infrastructure, our energy system and our advanced manufacturing base.
That is why we secured a better deal for the steel communities of Port Talbot in South Wales. It is why we nationalised British Steel earlier this year and have since appointed Alan Lovell to lead its comeback.
And it’s why we have acted to tackle the challenge posed by global steel overcapacity. Our new trade measures protect our domestic production from the flooding of the UK’s market with cheap imports from abroad.
We have a comprehensive Steel Strategy, backed by £2.5bn to stabilise and rebuild the steel sector - to support productive, profitable producers that can meet their customers’ needs, strengthen our national security, and create good-paying jobs.
Put all of these actions together and you will see a Government that’s serious about reindustrialising Britain, with the steel sector playing its part.
Jonathan Reynolds is the Secretary of State for Business, Innovation, Science and Trade.