State ownership - Sheffield Forgemasters is nationalised

Sheffield Forgemasters, a leading supplier of steel to the UK Ministry of Defence is to be taken into state ownership.

It marks another sector where the UK government has stepped in to protect jobs in sectors of strategic importance.

Sheffield Forgemasters is being bought by the Ministry of Defence which has pledged to invest up to £400m into the firm over the next 10 years, replacing defence-critical equipment and infrastructure.

The long-term aim is to return the business to the private sector. Sheffield Forgemasters has, in recent years - been reliant on loan guarantees from businesses such as Rolls-Royce, BAE Systems.

The takeover will preserve the jobs of around 600 Sheffield Forgemasters workers.

This is a small fraction of the many thousands who used to work in steel manufacturing in South Yorkshire in years past. But the shift towards state ownership will help to bring an end of the commercial uncertainty facing the company which has faced stiff competition from lower-cost steel imports sources from countries such as China.

One of the justifications nationalising the business is to protect the critical supply chain of engineering parts for Royal Navy's ships and nuclear submarines.