UAE-Based Steel Company Attempts to Buy Britain’s Third-Largest Steel Producer
Introduction to the Deal
A UAE-based steel company has attempted to buy Britain’s third-largest steel producer, months after it was declared "hopelessly insolvent" and fell into the hands of the insolvency administrator. The company in question is Specialty Steels UK (SSUK), which until last summer was owned by metals tycoon Sanjeev Gupta’s Liberty Steel empire.
The Bidder: Arabian Gulf Steel Industries
The bidder, Abu Dhabi-headquartered Arabian Gulf Steel Industries (AGSI), is among the few parties that have submitted proposals to take control of SSUK. The company fell into compulsory liquidation in August, sparking a row in Whitehall over finding a buyer to preserve the UK’s steelmaking capacity.
About Specialty Steels UK
SSUK has sites in Rotherham and Stocksbridge in South Yorkshire and employed almost 1,500 people across its operations when it collapsed last summer. The terms of any proposal by AGSI were unclear, and it was uncertain how far talks had progressed between AGSI and the official insolvency administrator.
AGSI’s Vision and Operations
AGSI describes itself as the “quintessence of net zero steel” and has committed to producing five million tonnes of steel by 2030, reducing carbon dioxide emissions by more than 95% compared to traditional steelmaking processes. The company is privately owned and led by its founder and managing director Asam Hussain.
Other Interested Parties
A number of other parties have also expressed interest in purchasing the companies in recent months. Mr. Gupta himself had secured backing from third parties, including BlackRock, the world’s largest asset manager, although the prospect of him being chosen to buy back the company appears extremely unlikely.
Government Response
An Insolvency Service spokesman said: “We can confirm that the official insolvency practitioner is continuing to process offers for the sale of Specialty Steel UK.” A government spokesman added: “We remain committed to a bright and sustainable future for steel production and steel jobs in the UK.”
Challenges Facing the UK Steel Sector
The sale process for SSUK comes at a time of general uncertainty for the UK steel sector, against the backdrop of US President Donald Trump’s tariff regime and an ongoing global glut in the metal. Ministers are considering merging some of the sector’s remaining companies, including British Steel, to ensure the industry’s viability.
Government Support for the Steel Industry
The government has spent hundreds of millions of pounds running British Steel, which is legally owned by China’s Jingye Group but was seized by the government last April under threat of closing its remaining blast furnaces. In 2024, ministers agreed to provide a £500 million grant to Indian company Tata Steel to install an electric arc furnace at its Port Talbot steelworks in Wales.
