A UAE-based metal firm has made an method to purchase Britain’s third-biggest metal producer, months after it was declared “hopelessly bancrupt” and fell into the fingers of the Official Receiver.
Sky Information has learnt that Arabian Gulf Metal Industries (AGSI), which is headquartered in Abu Dhabi, is amongst a small variety of events which have lodged proposals to take management of the Speciality Steels UK (SSUK) enterprise which till final summer time was owned by the metals tycoon Sanjeev Gupta’s Liberty Metal empire.
The enterprise collapsed into obligatory liquidation in August, sparking a scramble in Whitehall to discover a purchaser for it as a part of efforts to protect the UK’s steelmaking capabilities.
The SSUK enterprise operates websites at Rotherham and Stocksbridge in South Yorkshire, and throughout its operations employed near 1,500 individuals when it collapsed final summer time.
This weekend, it was unclear how superior any discussions have been between AGSI and the Official Receiver, whereas the phrases of any proposal have been additionally unclear.
One supply steered that AGSI is likely to be eager to safe monetary backing from Britain’s Nationwide Wealth Fund to help a takeover of SSUK and fund a resumption of steelmaking at its websites in Yorkshire.
AGSI describes itself on its web site as “the epitome of Internet Zero metal”, and has pledged to provide 5 million tons of metal by 2030, whereas lowering carbon dioxide emissions by greater than 95% in comparison with conventional steelmaking processes.
The corporate is privately owned and run by its founder and chief government, Asam Hussain.
AGSI didn’t reply to an emailed request for remark, however one supply expressed scepticism that it could finally purchase the Liberty Speciality Steels enterprise.
Quite a lot of different events have additionally expressed curiosity in shopping for the operations in latest months.
Mr Gupta himself had secured backing from third events together with Blackrock, the world’s largest asset supervisor, though the prospect of him being chosen to repurchase the enterprise seems to be extraordinarily distant.
An Insolvency Service spokesperson stated: “We are able to verify that the Official Receiver continues to progress bids for the sale of Speciality Metal UK.
“The gross sales course of is ongoing, with the goal to finish a sale on the earliest alternative.”
In response to an enquiry from Sky Information, a authorities spokesperson stated: “We stay dedicated to a brilliant and sustainable future for steelmaking and steelmaking jobs within the UK.
“The impartial Official Receiver is finishing up his duties as liquidator, whereas we additionally be certain that workers and native communities are supported.”
The Nationwide Wealth Fund failed to answer an enquiry from Sky Information.
The sale course of for SSUK comes throughout a interval of broader uncertainty for the British metal sector, towards the backdrop of US President Donald Trump’s tariffs regime and a continued world glut of the metallic.
In November, Sky Information revealed that ministers have been drafting in bankers at Evercore to conduct a evaluate of choices for the business.
Peter Kyle, the enterprise secretary, and UK Authorities Investments (UKGI), the Whitehall company which manages taxpayers’ pursuits in a spread of firms, together with the Publish Workplace and Channel 4, are anticipated to think about whether or not to merge a few of the remaining firms within the sector.
These would come with British Metal, the Scunthorpe-based producer which is legally owned by China’s Jingye Group however which was seized by the federal government final April amid a menace to shut its remaining blast furnaces.
To this point, the federal government has spent lots of of tens of millions of kilos on working British Metal.
The federal government’s transfer prevented the fast lack of greater than 3,000 jobs, though there stay questions concerning the firm’s viability as a standalone entity.
“We proceed to work with Jingye to discover a pragmatic, real looking resolution for the way forward for British Metal,” Chris McDonald, the business minister, stated in a press release to parliament in November.
“Our long-term aspiration for the corporate would require co-investment with the non-public sector to allow modernisation and decarbonisation, safeguard taxpayers’ cash and retain steelmaking in Scunthorpe.”
In 2024, ministers agreed to offer £500m in grant funding to Tata Metal, the Indian firm, to put in an electrical arc furnace at its Port Talbot steelworks in Wales.
The brand new facility is anticipated to be operational in 2027, however has been bitterly opposed by commerce unions infuriated that the brand new funding was successfully used to drive by means of hundreds of redundancies on the plant.
