The insolvent steelmaker, formerly part of the tycoon Sanjeev Gupta\u2019s industrial empire<\/a>, fell into administration last year and its day-to-day operations have since been run by the government\u2019s official receiver.<\/p>\n The Norwegian steel startup Blastr Green Steel had been in talks to buy SSUK, but hopes had faded over the summer for a private sector takeover after a deadline to finalise a deal passed in June.<\/p>\n The steelworks and its staff have been described by Reynolds as important strategic assets for the UK. SSUK is the largest producer of \u201cgreen steel\u201d, made using less-polluting electric arc furnaces.<\/p>\n Reynolds said: \u201cWe do not intervene in private companies lightly. But nor can we simply stand aside and allow the future of this company and over 1,300 jobs to be decided by default.<\/p>\n \u201cWorking towards public acquisition will keep options open while we work with local leaders, workers, industry and investors to determine the best long-term future for these sites, which could play a vital role in the future of the growth-driving sectors in our industrial strategy, including defence and advanced manufacturing.<\/p>\n SSUK went bust last year after longstanding financial issues under previous ownership, particularly after the collapse of its primary lender Greensill Capital in 2021. A high court judge at the time found the company was \u201chopelessly insolvent\u201d, with only \u00a3650,000 in the bank after running down its reserves.<\/p>\n Since then, the government has been funding the wages of its workers, costing \u00a33.5m a month. The plants have not been producing steel<\/a> for the last year, though some staff remain on its sites to maintain equipment.<\/p>\n Ministers\u2019 preference was for a private sector buyer, but after what were described as \u201cextensive discussions\u201d with Blastr, officials decided the company\u2019s offer could not provide the desired long-term stability for SSUK.<\/p>\n A Blastr spokesperson said: \u201cWe are disappointed by the government\u2019s decision today concerning Speciality Steel UK, and we were not informed in advance. Over the course of several months, we have advanced our plans for a private sector solution to acquire SSUK \u2013 and were today on site in South Yorkshire with investors and strategic partners. We have a fully-funded proposal \u2013 at no cost to the British taxpayer \u2013 that is ready to complete within 12 weeks.\u201d<\/p>\n Mark Bula, the Blastr chief executive, quit the company unexpectedly at the end of last month, with its finance boss, David Morant, taking his place.<\/p>\n The shadow business minister Bradley Thomas said it was \u201csurprising\u201d that the government had moved away from a private sector buyer after picking a preferred bidder. Speaking in parliament, he asked Reynolds: \u201cOther than a new prime minister who\u2019s committed ideologically to nationalisation, what has changed<\/p>\n
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