A major steel producer from the United Arab Emirates has stepped forward as a potential buyer for Britain's third-largest steelmaker, which collapsed into insolvency last summer. Sky News has learned that Arabian Gulf Steel Industries (AGSI), headquartered in Abu Dhabi, is among a select few parties to have submitted proposals to the Official Receiver.
Bid for a 'Hopelessly Insolvent' Empire
The target is the Speciality Steels UK (SSUK) business, previously part of metals tycoon Sanjeev Gupta's Liberty Steel group. The company was declared "hopelessly insolvent" and entered compulsory liquidation in August 2025, triggering a government-led scramble to preserve vital UK steelmaking capacity and protect jobs.
SSUK operates plants in Rotherham and Stocksbridge, South Yorkshire, and employed nearly 1,500 people at the time of its collapse. The precise terms of AGSI's proposal and the stage of discussions remain unclear, but sources indicate the Emirati firm may seek financial backing from the UK's National Wealth Fund to support the acquisition and restart production.
The Green Steel Contender
AGSI presents itself as a pioneer of sustainable production, branding itself "the epitome of Net Zero steel" on its website. The privately-owned company, run by founder and CEO Asam Hussain, has pledged to produce 5 million tons of steel by 2030 while cutting carbon emissions by over 95% compared to traditional methods.
While AGSI did not comment, industry sources expressed scepticism about whether it would ultimately succeed. Other parties have also shown interest in recent months. The prospect of Sanjeev Gupta himself repurchasing the business, despite previously securing backing from firms like BlackRock, is now considered extremely remote.
Broader Crisis in UK Steel
This potential takeover unfolds against a backdrop of profound uncertainty for the British steel sector. The industry faces challenges from President Trump's tariffs and a global oversupply of metal.
The government is actively involved in stabilising the sector. Key recent developments include:
- The seizure of British Steel in Scunthorpe from Chinese owner Jingye Group in April 2025 to prevent its closure, safeguarding over 3,000 jobs at a cost of hundreds of millions in taxpayer funds.
- A £500 million grant to Tata Steel in 2024 to build an electric arc furnace in Port Talbot, Wales, a move controversially linked to major job losses.
- Business Secretary Peter Kyle commissioning a review of the industry, with options including a potential merger of remaining companies like British Steel.
An Insolvency Service spokesperson confirmed the Official Receiver is "progressing bids" for SSUK, aiming for a swift sale. The government reiterated its commitment to a "sustainable future for steelmaking" in the UK, while the National Wealth Fund did not respond to enquiries.
The outcome of the AGSI bid will be a critical test of the UK's ability to attract investment and secure the future of its foundational industries.
