Sheffield Forgemasters bought by Ministry of Defence
The government will invest up to £400m in the steel company
Sheffield Forgemasters will be brought under public ownership after shareholders agreed to sell the company to the Ministry of Defence.
Unions say the news comes as a "huge sigh of relief" after uncertainty over the future of the steel-making business.
It's already been making forgings and castings for submarine platforms and surface vessels as a supplier to companies like Rolls Royce and BAE Systems.
David Bond, CEO at Sheffield Forgemasters, said:
“The agreement to bring the company under the ownership of the MoD provides a more secure future for the business and its people. The MoD’s intention is to invest up to £400m over the next 10 years to replace defence-critical equipment and infrastructure as we recapitalise our productive capacity, positioning the company to retain and create new highly skilled manufacturing jobs within the Sheffield City region.”
“Sheffield Forgemasters and its shareholders are not able to fund an investment of this size and so this acquisition marks the culmination of a process, started two years ago, that enables us to be a reliable and secure supplier to defence for the long-term. I am grateful to my colleagues on the Board and throughout the business who have supported us on this journey.”
The move is expected to boost the local economy and bring more security for jobs at Forgemasters.
The Unite union's assistant general secretary for manufacturing, Steve Turner said:
"This is the news we've waited two years to hear. Unite has been engaged in a long battle with the Ministry of Defence and the UK government to protect UK steel supply to our defence and nuclear programmes so today’s news will be welcomed with a huge sigh of relief right across our steel communities.
"It 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.
"But we only got to today's good news because our members at Sheffield Forgemasters had the confidence and faith to invest in their plant’s 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.
“We now look forward to a secure future for the plant which brings with it the guarantee for both today’s workforce and the thousands of young workers to follow the hope of a highly skilled job in a well-paid, unionised plant."