Defence titans offer £30m to Sheffield steel maker
Sheffield Forgemasters laid off 100 of its 700 staff last week after a slump in performance
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.The troubled steel producer Sheffield Forgemasters has been thrown a lifeline after a trio of British industry heavyweights agreed to help bail out the business.
Rolls-Royce, BAE Systems and Babcock International will stand behind £30m of support loans provided by banks to keep the historic company going amid a sharp drop in sales. The deal was brokered by the Ministry of Defence.
Forgemasters, which makes parts used in UK submarines and has operated since 1805, is one of numerous firms feeling the pinch following the plunge in steel prices as cheap Chinese steel flooded the market. It was forced to lay off 100 of its 700 staff last week after a slump in performance.
The £30m loan, provided by the US bank Wells Fargo, will be underwritten by Submarine Entreprise Partners, a joint venture between BAE, Babcock and Rolls-Royce to build a replacement fleet of submarines.
Unions welcomed the move, with Tony Burke, the assistant general secretary of Unite, saying: “The thousands of workers, who depend on Forgemasters in some way for their job, will rest a bit easier today, but we are still deeply concerned about the plight of the UK steel sector more generally.”
The company had been in line for rescue by a Chinese state-owned backer but the deal fell through amid security concerns. The Ministry of Defence was reportedly concerned about giving a Chinese firm sway over a company making kit for British submarines, and government ministers privately warned that they would block any deal.
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments