The move, which comes after a court-approved liquidation of Speciality Steel, is meant to preserve jobs and domestic manufacturing.

The British government said it will take control of a part of Liberty Steel, owned by commodities tycoon Sanjeev Gupta, after the business was placed into liquidation following a petition from its creditors on Thursday.

The UK's third-largest steelworks has been placed under government control, creating an uncertain future for nearly 1,500 workers in Rotherham and Sheffield. Insolvency courts granted a compulsory winding up order sought by creditors owed hundreds of millions of pounds by Speciality Steels UK (SSUK) – part of the metals empire of controversial tycoon Sanjeev Gupta.