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.

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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