STEEL unions are celebrating after the government stepped in today to nationalise key manufacturer Sheffield Forgemasters.

The firm will be bought by the Ministry of Defence in a peppercorn deal worth £2.56 million.

Taxpayers will also take responsibility for any debts and invest £400m in the company’s future.

Steve Turner of the Unite union 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.”

Roy Rickhuss, general secretary of Community — formerly the Iron and Steel Trades Confederation — said: “We see this move as a recognition of the importance of the steel industry to our country’s 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.”

Sheffield TUC also welcomed the company’s return to public ownership.

“It has been clear all along that privatising such a critically important infrastructure company as steel has been a disaster,” said secretary Martin Mayer.

“The government’s takeover marks a significant and welcome turning point in the future of steel.”