Britain’s steel industry, long considered the backbone of its manufacturing might, is once again at a crossroads. As of August 16, 2025, the sector faces a mix of peril and promise, with the fate of thousands of jobs and the future of domestic steelmaking hanging in the balance. Two major stories have converged this week: the struggle of Sanjeev Gupta’s Liberty Steel to avoid collapse and the appointment of Tata Steel UK’s chief executive, Rajesh Nair, as chair of UK Steel—the representative body for the entire industry.
The drama surrounding Liberty Steel’s Speciality Steel UK (SSUK) arm has reached a fever pitch. According to Sky News, metals tycoon Sanjeev Gupta is racing to finalize a controversial deal to salvage his remaining UK steel operations and avert their collapse into compulsory liquidation. The stakes are high: nearly 1,500 jobs are at risk, and the company’s future could be decided as soon as next week, when a winding-up petition—filed by Harsco Metals Group, a key supplier and backed by other trade creditors—is scheduled to be heard.
Gupta’s proposed solution is a so-called connected pre-pack administration. This would involve selling SSUK’s assets—potentially to parties linked to him—after shedding hundreds of millions of pounds in tax and other liabilities owed to creditors. Begbies Traynor, a well-known accountancy firm, is reportedly working on progressing this pre-pack deal. If the winding-up petition is approved, government officials have already stepped up contingency planning for the collapse of SSUK. In such a scenario, SSUK would likely enter compulsory liquidation within days, with a special manager appointed by the Official Receiver to run operations.
SSUK operates steel plants in Sheffield and Rotherham, both in South Yorkshire, employing over 1,400 people. As Britain’s third-largest steel producer, its operations are crucial for the nation’s industrial supply chains. The company also maintains a site in Bolton, Lancashire, producing highly engineered steel products for sectors such as aerospace, automotive, and oil and gas. According to Liberty Steel, nearly £200 million has been invested in the UK steel industry over the last five years, but the company has faced “significant challenges due to soaring energy costs and an over-reliance on cheap imports, negatively impacting the performance of all UK steel companies.”
The uncertainty plaguing Liberty Steel isn’t new. The company’s financial struggles have been mounting for years, exacerbated by the collapse of Greensill Capital—a major financier of Liberty Steel’s parent, GFG Alliance. Creditors include HM Revenue and Customs and UBS, the investment bank that played a key role in rescuing Credit Suisse and is now a creditor due to its ties to Greensill. The Serious Fraud Office launched a probe into GFG Alliance in 2022, further complicating matters.
Liberty Steel’s spokesperson, speaking on August 16, 2025, told Sky News, “Discussions are ongoing to finalise options for SSUK. We remain committed to identifying a solution that preserves electric arc furnace steelmaking in the UK—a critical national capability supporting strategic supply chains. We continue to work towards an outcome that best serves the interests of creditors, employees, and the broader community.”
Government intervention, while not imminent, remains a possibility. Jonathan Reynolds, the business secretary, has been closely monitoring developments. Last month, The Guardian reported that Reynolds had not ruled out stepping in to support Liberty Steel’s SSUK arm. He has a recent track record in this area: in April 2025, he orchestrated the rescue of British Steel, the Scunthorpe-based steelmaker, after failed negotiations with its Chinese owner, Jingye Group. With Jingye preparing to close Scunthorpe’s remaining blast furnaces, Reynolds stepped in and seized control of the company. Formal nationalization of British Steel is anticipated in the autumn.
Amid the turmoil at Liberty Steel, another major development has given the industry a glimmer of hope. On August 15, 2025, Rajesh Nair, CEO of Tata Steel UK, was appointed chair of UK Steel, the representative body for the UK’s steel sector. Nair’s appointment comes at a critical juncture, as the industry faces profound change and prepares for the government’s Steel Strategy, expected to be unveiled this autumn.
Rajesh Nair brings more than 36 years of experience across the Tata Steel Group to his new role. Since joining Tata Steel UK as chief operating officer in 2021 and becoming CEO in 2023, he has played a central role in reshaping the business, advancing its transition to low-CO2 steelmaking, and securing the future of domestic steel production in South Wales and beyond. Nair’s background is impressive: he holds an electrical engineering degree from the Indian Institute of Technology (Banaras Hindu University), has overseen major transformation programs globally, and played a key role in the 2007 integration of Corus Group into Tata Steel.
Upon his appointment, Nair said, “It’s an honour to be appointed chair of UK Steel at such a pivotal moment for the industry. This is a period of profound change—with significant challenges, but also real opportunities to strengthen the sector for the long term. I look forward to working with UK Steel members and stakeholders to help secure that future—working closely with the Government on its Steel Strategy and addressing structural issues like uncompetitive energy costs and the growing threat of high-emission imports.”
Gareth Stace, UK Steel’s director-general, welcomed Nair’s appointment, telling UK Steel News, “The appointment of Rajesh as chair of UK Steel is excellent news for both UK Steel and our industry as a whole, and he will bring a wealth of experience across both the global and UK steel industry to this role. His appointment could not have come at a better time as our industry looks to modernise and grow as the Government prepares to publish its Steel Strategy this autumn.”
Tata Steel, under Nair’s leadership, has already secured a £500 million government grant to build an electric arc furnace at Port Talbot, Britain’s largest steelworks, as part of the drive toward greener steel production. Nair’s technical expertise is well recognized: he is a board member of Tata Steel UK, chairs Surahammars Bruks in Sweden, is a Fulbright Scholar with advanced management training, and holds patents in galvanised steel products.
Meanwhile, the challenges facing the broader sector remain daunting. Other parts of Gupta’s steel empire have also shown signs of financial distress. In May 2025, Liberty Commodities prepared for insolvency, and earlier this month, HMRC filed a winding-up petition against Liberty Pipes, another subsidiary. Gupta has previously sought government aid for SSUK, including during the pandemic, but those requests were rebuffed.
As the industry awaits the outcome of next week’s pivotal court hearing and the government’s forthcoming Steel Strategy, the stakes could hardly be higher. The future of thousands of jobs, the survival of key domestic supply chains, and the UK’s ambitions for greener, more competitive steelmaking all hang in the balance. The coming weeks will reveal whether the sector can weather yet another storm—or if the next chapter in Britain’s steel story will be written by new hands.
