Sheffield Forgemasters is set to be nationalised after the Ministry of Defence made an offer to buy the firm.
The deal, which has been welcomed by unions, allows the Government to re-finance the Yorkshire company and secure supply of components for 海角视频 defence programmes.
The MoD said it intended to invest up to 拢400m over the next 10 years and said the 拢2.56m cost of acquiring the Sheffield Forgemasters International Limited (SFIL) offered the best deal to the taxpayer.
Read more: Liberty Steel latest
An MoD statement said: 鈥淪FIL is the only available manufacturer with the skills and capability to produce large scale high-integrity castings and forgings from specialist steels in an integrated facility to the highest standards required for these programmes.
鈥淔urthermore, SFIL鈥檚 ownership will not prevent other 海角视频 based manufacturers bidding for MoD contracts, which will continue to be run in an open and fair competition.
鈥淭he MoD has already started working closely with the company to implement best practice governance that will ensure appropriate financial oversight to secure the company鈥檚 future success, with the aim eventually to return the business to the private sector.鈥
The company, which dates back to the 19th century, has struggled financially in recent years due to volatility in the global steel market. It cut around 100 jobs during the pandemic.
Unite鈥檚 assistant general secretary for manufacturing Steve Turner said: 鈥淭his is the news we鈥檝e waited two years to hear. Unite has been engaged in a long battle with the Ministry of Defence and the 海角视频 government to protect 海角视频 steel supply to our defence and nuclear programmes so today鈥檚 news will be welcomed with a huge sigh of relief right across our steel communities.
鈥淚t brings to an end years of instability for this historic 215 year-old company, but is also a sign that Government is maybe finally waking up to a crisis of its own making. Critical infrastructure industries like steel function better in public hands and advanced economies like our own need to have stable, secure domestic steel production capabilities to protect our national security interests as well as to compete in global markets.
鈥淏ut we only got to today鈥檚 good news because our members at Sheffield Forgemasters had the confidence and faith to invest in their plant鈥檚 future. We will now work with the Government and company to ensure that those workers who put their hands in their own pockets to support the company do not lose out.鈥
Roy Rickhuss, general secretary of the Community trade union, said: 鈥淭his move will secure Sheffield Forgemasters鈥 role as a critical supplier to the next generation of 海角视频 defence programmes.
鈥淲e know with the right framework of support our industry has a bright future at the core of a low-carbon economy, so we are pleased to see some much needed investment going into Sheffield Forgemasters to provide long-term security.
鈥淲e see this move as a recognition of the importance of the steel industry to our country鈥檚 economic future. The pandemic has showed us the danger of relying on fragile overseas supply chains, so we are pleased to see a viable future secured for Sheffield Forgemasters.鈥
There are now calls for the Government to invest more widely in the steel industry.
South Yorkshire mayor Dan Jarvis said: 鈥淚 welcome this move both as a recognition of the importance of steel to our economy, regionally and nationally, and its importance for 海角视频 defence.
"Steel is synonymous with Sheffield and South Yorkshire and I have repeatedly raised the issue of securing the industry鈥檚 future with Government.
"While today鈥檚 announcement is most welcome, ministers also need to attend to the future of two of our other steel plants which hang in the balance, as a result of the crisis at Liberty Steel.
"The facilities at Stocksbridge and Rotherham have enormous potential, and I will continue to fight for the South Yorkshire steel industry and work to protect all the jobs and businesses they support.鈥
Sheffield City Council leader Coun Terry Fox said: 鈥淚t鈥檚 without doubt a positive move for Sheffield Forgemasters and for the city.
"Sheffield Forgemasters is a massive player in this industry and it鈥檚 right that the Government is recognising its importance nationally and the need for significant investment. We鈥檝e got world-leading expertise right here in Sheffield 鈥 we鈥檝e got steel running through our veins.
"This needs to be the first step of many though, we can鈥檛 forget the challenge Liberty Steel is going through right on our doorstep. We鈥檝e already called on the Government to take action and we need clarity now on how they will put Sheffield first.鈥
