UK government takes over another steelmaker as industry suffers

THE UK government said on Thursday that it would take temporary ownership of the country’s 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’s 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.

“We remain committed to a bright and sustainable future for steelmaking and steelmaking jobs in the UK,” a government spokesman said in a statement to AFP.

Liberty Steel denounced an “irrational” decision after a court rejected its plan to maintain operations at Speciality, whose debt pile has mounted to hundreds of millions of pounds.

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’s 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. AFP