Norwegian Green Steel Group Blastr Emerges as Bidder for UK's Speciality Steels
In a significant development for Britain's steel industry, Norwegian green steel group Blastr has entered talks to acquire Speciality Steels UK, the nation's third-largest steel producer which collapsed into compulsory liquidation six months ago. Sky News has learned that Blastr, a privately-owned company, is among a select group of parties negotiating with the Official Receiver regarding a potential purchase of the business.
Strategic Acquisition Targets UK Steel Assets
Speciality Steels UK operates from manufacturing sites in Rotherham and Sheffield, employing well over 1,000 workers. The company was previously part of Sanjeev Gupta's metals empire before being declared "hopelessly insolvent" by a judge last summer. Since entering compulsory liquidation, multiple parties have expressed interest in rescuing the business, with Blastr now emerging as a serious contender.
Blastr is led by steel industry veteran Mark Bula, who has extensive experience at American companies Nucor and Big River Steel. Both firms have successfully disrupted traditional blast furnace production through electric arc furnace steelmaking technology. Based in Norway, Blastr was established specifically to create an iron and steel value chain in the UK and Europe with a focus on low-cost, globally competitive, and environmentally sustainable operations.
Competitive Bidding Landscape and Strategic Moves
Sources close to the negotiations reveal that Blastr has retained investment bank Evercore to advise on its interest in Speciality Steels UK. Interestingly, Evercore has also been engaged by the UK government to provide counsel on broader steel industry strategy, including potential mergers involving SSUK and other sector assets. One insider indicated that Blastr is actively seeking strategic acquisitions that would enable the company to deliver ultra-low emission iron and steel at the most competitive costs across the UK and Europe.
Blastr faces competition from other bidders including Arabian Gulf Steel Industries, headquartered in Abu Dhabi, and 7 Steel UK, owned by Czech energy tycoon Pavel Tykac. The latter company previously acquired the Allied Steel and Wire site in Cardiff from Spanish firm Celsa last year. Whitehall insiders suggest a preferred bidder could be selected within weeks, though they caution that none of the shortlisted parties may ultimately secure a satisfactory agreement.
Corporate Restructuring and Financing Uncertainties
Blastr has reportedly drawn up plans to relocate its holding company from Norway to the United Kingdom, though it remains unclear whether this move depends on successfully acquiring Speciality Steels UK. According to insiders, any deal for Blastr to purchase Mr. Gupta's former assets would likely involve establishing a special purpose vehicle to facilitate the transaction.
The financing arrangements for all bids remain uncertain. Last month, Sky News reported that Arabian Gulf Steel Industries was rumored to be seeking financial backing from Britain's National Wealth Fund to support a takeover of Speciality Steels UK and fund the resumption of steelmaking operations at its Yorkshire sites. While Sanjeev Gupta himself previously secured backing from third parties including Blackrock, the world's largest asset manager, the likelihood of him repurchasing the business appears extremely remote.
Broader Context of UK Steel Industry Challenges
The sale process for Speciality Steels UK unfolds against a backdrop of broader uncertainty within the British steel sector. British Steel, the Scunthorpe-based producer legally owned by China's Jingye Group but seized by the government last April amid threats to close its remaining blast furnaces, continues to cost taxpayers a daily seven-figure sum in subsidies. The government has already spent hundreds of millions of pounds maintaining operations, preventing the immediate loss of more than 3,000 jobs, though questions persist about the company's long-term viability as a standalone entity.
In 2024, ministers agreed to provide £500 million in grant funding to Tata Steel, the Indian company, to install an electric arc furnace at its Port Talbot steelworks in Wales. The new facility is expected to become operational in 2027 but has faced bitter opposition from trade unions angered that the funding effectively facilitated thousands of redundancies at the plant.
An Insolvency Service spokesperson confirmed earlier this month that the Official Receiver continues to progress bids for the sale of Speciality Steel UK, with the aim of completing a transaction at the earliest opportunity. A spokesman for Blastr declined to comment on the ongoing negotiations.
