The future of a Black Country plant hangs in the balance after British Steel was placed into liquidation.

The Official Receiver has been appointed as liquidator of the UK steel group which continues to trade at present and no redundancies have been made.

The company, which is headquartered in Scunthorpe, operates a distribution and stockholding centre in Wolverhampton where it employs 51, staff according to the Official Receiver, and serves customers across the West Midlands and South West.

The liquidation could affect up to 25,000 workers across the UK at both British Steel and in its supply chain if a rescue deal cannot be found after talks with the Government failed to secure a reported £30 million bailout.

Workers at the company's plants now face weeks of uncertainty as efforts are made to rescue the business.

British Steel's owner, Greybull Capital, had been seeking financial support from the Government, saying it faced a number of Brexit-related issues.

In April, the company secured a £100 million loan from the government to pay its EU carbon bill.

Dan Turner, policy officer at Black Country Chamber of Commerce, said: "We are currently speaking to members about British Steel's administration in order to gauge its immediate effect on the Black Country.

"As ever, with the administration of a company this size, we expect the impact to be felt across the supply chain.

"We will be supporting chamber members. We know manufacturers are facing a range of issues at the moment, from constant uncertainty around Brexit, to rising energy costs and difficulties finding the right staff."

A statement by the Official Receiver added: "The immediate priority following my appointment as liquidator of British Steel is to continue safe operation of the site.

"I appreciate that this a difficult time for the company's employees and I want to thank them for their ongoing co-operation.

"The company in liquidation is continuing to trade and supply its customers while I consider options for the business.

"Staff have been paid and will continue to be employed."

Business Secretary Greg Clark said: "The Government has worked tirelessly with British Steel, its owner Greybull Capital and lenders to explore all potential options to secure a solution.

"We have shown our willingness to act, having already provided the company with a £120 million bridging facility to enable it to meet its emissions trading compliance costs.

"The Government can only act within the law, which requires any financial support to a steel company to be on a commercial basis.

"I have been advised that it would be unlawful to provide a guarantee or loan on the terms of any proposals that the company or any other party has made."