Government pursuing 'all options' for steel-making

Speciality Steel UK went into insolvency last month

The government will pursue "every option" to keep steel-making in South Yorkshire, an industry minister said after Speciality Steel UK went into insolvency last month.

Sarah Jones said she "very much believes" that the steelworks have a future in South Yorkshire as well as the West Midlands.

In a statement to the House of Commons, Jones said the government "stands with" all those affected and that there would be no immediate changes to jobs.

The government took control of Speciality Steel UK, the country's third largest steelworks, in August in a bid to save nearly 1,500 jobs.

It came after the High Court confirmed that Speciality Steel would face compulsory liquidation.

The operation has plants in Rotherham, Stockbridge and Brinsworth in South Yorkshire, as well as Wednesbury in the West Midlands.

The firm has been placed into the hands of the Official Receiver, a government official that manages bankruptcies, and special managers from advisory firm Teneo.

'Private investment'

Jones told MPs: "The government stands with the affected steel workers in Rotherham, in Sheffield and in Wednesbury.

"We stand with their families and the communities who will undoubtedly be worried at this very difficult time.

"I would like to reassure them and all those employed by Liberty Speciality Steels that we are standing by with our rapid response teams to give immediate support on the ground, if required."

Jones said the government was working with trade unions as well as local politicians and councillors.

"I also want to stress that there will be no immediate changes to the current operation of the business, including employees' jobs," she said.

Industry Minister Sarah Jones "very much believes" steelworks have a future in South Yorkshire and the West Midlands

Jones added that the future of steel-making had to be secured "through private investment" to "put it on a long-term sustainable footing".

"We will pursue every option to keep steel-making in Rotherham, in Sheffield, in South Yorkshire and the West Midlands," she said.

Liberty Speciality Steels - which is run by CEO Sanjeev Gupta - had failed to file accounts for more than six years, Jones said, leading to a prosecution from Companies House, and the company's director is under investigation for suspected fraud, fraudulent trading and money laundering.

Shadow business minister Gareth Davies accused the government of failing British industry.

He said: "Despite so many warm words about the steel industry, despite so many Labour promises to the people who have worked their whole lives in the steel industry, and despite the impression of superiority while in opposition, this Labour government is failing British industry."

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