The Ministry of Defence is in talks to take over one of Britain’s oldest steelmakers.
Defence chiefs are considering acquiring Sheffield Forgemasters.
Under pressure: The company, whose origins go back to the 1750s, has struggled for several years
Although its work for the MoD has not been made public, it is thought to make components for Trident nuclear submarines.
The company, whose origins go back to the 1750s, has struggled for several years, but the pandemic has dealt it another blow and in October it was forced to cut more than 10 per cent of its workforce.
In 2016 BAE Systems, Babcock International and Rolls-Royce underwrote a £30m loan provided by Wells Fargo to help Sheffield Forgemasters stay afloat.
The MoD has hired Deloitte to advise it on the talks, but other options are still on the table, and any agreement is likely to be months away, sources told Sky News.
The pandemic has also pummelled rivals, such as Tata Steel’s Port Talbot works.
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