UK court orders liquidation of Liberty Steel's specialty steelmaker SSUK

Speciality Steel UK, which has plants in Rotherham and Stocksbridge, was put into compulsory liquidation by the High Court in London late Aug. 21, the third-largest UK steel company confirmed to Platts, part of S&P Global Energy.

Liberty Steel said the decision was "irrational." In a press note, Chief Transformation Officer Jeffrey Kabel said the liquidation "will now impose prolonged uncertainty and significant costs on UK taxpayers for settlements and related expenses, despite the availability of a commercial solution."

Instead, the plan that GFG Alliance, the holding company, presented to the court "would have secured new investment in the UK steel industry, protecting jobs and establishing a sustainable operational platform under a new governance structure with independent oversight."

Liberty has pursued all options to make SSUK viable, including efficiency improvements, reorganizations, customer support, several attempts to find a buyer for the business and intensive negotiations with creditors to restructure debt liabilities. The company's shareholder has invested nearly Eur200 million, recognizing the vital role steel plays in supplying the UK's strategic defense, aerospace and energy industries, the statement read.

"GFG will now continue to advance its bid for the business in collaboration with prospective debt and equity partners and will present its plan to the official receiver," Kabel said. "GFG continues to believe it has the ideas, management expertise and commitment to lead SSUK into the future and attract major investment. GFG's other significant business interests in the UK remain unaffected."

When asked for comment, a government spokesperson told Platts, "We know this will be a deeply worrying time for staff and their families, but we remain committed to a bright and sustainable future for steelmaking and steelmaking jobs in the UK."

"It is now for the independent Official Receiver to carry out their duties as liquidator, including ensuring employees are paid, while we also make sure staff and local communities are supported," the spokesperson added.

SSUK has been involved in complex debt restructuring since the collapse of Greensill Capital in 2021, restricting its access to capital, and it has also faced long-standing competitiveness challenges.

Creditors previously petitioned the court to put the company into liquidation to pay its debts.

Since 2021, SSUK has been open to selling the business and has pursued all options to make it viable, including reorganization, efficiency improvements and customer support.

In November 2024, Liberty announced a transformative restructuring plan for the SSUK division, aimed at alleviating the company's debt burden and positioning SSUK for future growth.

The SSUK division operates across sites including Rotherham, Stocksbridge and Brinsworth, producing specialty steel grades for the aerospace, defense and energy sectors.

The company, part of Sanjeev Gupta's GFG Alliance, was hit by the collapse of Greensill, the principal financial backer of GFG Alliance. At the end of March, the company signed a framework with its major creditors to consolidate its UK steel businesses under a new entity.

Platts assessed the weekly UK hot-rolled coil price at GBP515mt DDP West Midlands Aug. 14, down 3% from the start of 2025.