On Thursday the insolvency courts allowed Liberty Steel to receive a compulsory winding up order as creditors are owed millions.
Speciality Steels UK, which is part of Liberty Steel which is owned by Sanjeev Gupta uses scrap metal to then manufacture steel and employs around 1,500 workers.
South Yorkshire mayor Oliver Coppard said the workers at the Rotherham steel works in Sheffield to have had the “brightest” future.
Speciality Steels UK will now be put into government control which has been appointed by the liquidator.
Coppard said, “[The] news about Liberty Steel is difficult, but offers the opportunity for clarity and a path forward.
There is and will continue to be a period of uncertainty for workers at Liberty’s two sites in South Yorkshire.
A government spokesperson said they are “committed to a bright and sustainable future” for British steel.
I now want to see swift progress from government to safeguard the unique steelmaking capabilities we have here in our region,” Coppard said.
I will be seeking a conversation with ministers as a matter of urgency and will do everything I can to make sure that workers at Liberty Steel and the steel industry that is so integral to our identity have the brightest possible future.”
Charlotte Brumpton-Childs, GMB national officer, told BBC Breakfast, “What has happened is again another example of when the government does not have a stake in these important national assets, they are at the whim of often international owners that have profit above people and don’t have a stake in the UK national infrastructure.
Unite general secretary Sharon Graham said, “If the right buyer cannot be found then the government should be prepared to run the company itself and ensure it is ready to meet the challenges of the future.”
A government spokesperson said, “We know this will be a deeply worrying time for staff and their families, but we remain committed to a bright and sustainable future for steelmaking and steelmaking jobs in the UK.
It is now for the independent official receiver to carry out their duties as liquidator, including ensuring employees are paid, while we also make sure staff and local communities are supported.”
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