UAE steel group bids for bankrupt UK’s third-largest steelmaker

Arabian Gulf Steel Industries (AGSI), a United Arab Emirates (UAE)-based company, has approached the Official Receiver to buy Speciality Steels United Kingdom (SSUK) out of insolvency this weekend.

AGSI, whose headquarter is located in Abu Dhabi is one of a small number of parties seeking to take control of the UK’s third-biggest steel producer, which collapsed into compulsory liquidation last August.

The move aims to secure the future of operations at sites in Rotherham and Stocksbridge, where nearly 1,500 people were employed.

SSUK was previously owned by Sanjeev Gupta’s Liberty Steel empire before being declared “hopelessly insolvent.”

According to Sky News, it remains unclear how advanced the discussions are between AGSI and the Official Receiver, or what the specific terms of the proposal include.

One source indicated that AGSI, which is led by founder and chief executive Asam Hussain, might seek financial backing from the UK’s National Wealth Fund to resume steelmaking in Yorkshire.

On its website, the private company describes itself as “the epitome of Net Zero steel” and has set a goal to produce five million tons of steel by 2030 while cutting emissions by 95%.

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While AGSI did not respond to requests for comment, some industry observers expressed skepticism about the potential deal.

Other parties have also shown interest in the business. This includes Mr. Gupta, who reportedly secured backing from asset manager Blackrock, though his chances of regaining the company are considered remote.

An Insolvency Service spokesperson said: “We can confirm that the Official Receiver continues to progress bids for the sale of Speciality Steel UK. The sales process is ongoing, with the aim to complete a sale at the earliest opportunity.”

The UK government is monitoring the situation as part of a broader effort to maintain domestic steel capabilities.

A government spokesperson said: “We remain committed to a bright and sustainable future for steelmaking and steelmaking jobs in the UK. The independent Official Receiver is carrying out his duties as liquidator, while we also make sure staff and local communities are supported.”

The sale process occurs during a difficult period for the British steel industry, which is facing global metal surpluses and new tariffs from United States (US) President Donald Trump.

Business Secretary Peter Kyle and UK Government Investments are currently reviewing options for the sector, which may include merging remaining companies like British Steel.

British Steel was seized by the government last April from China’s Jingye Group to prevent its closure.

“We continue to work with Jingye to find a pragmatic, realistic solution for the future of British Steel,” Industry Minister Chris McDonald said in a November statement.

“Our long-term aspiration for the company will require co-investment with the private sector to enable modernisation and decarbonisation, safeguard taxpayers’ money and retain steelmaking in Scunthorpe.”

This follows a 2024 agreement where ministers provided £500m to Tata Steel to install an electric arc furnace in Wales, a move that is expected to be operational in 2027 but has faced opposition from unions due to resulting job losses.

(Sky News)