The UK government announced on Wednesday the nationalization of Sheffield Forgemasters International Limited (SFIL), amid concern that the steel company's failure could hit the supply of components for the Ministry of Defense' nuclear submarines and other critical programs
LONDON (Pakistan Point News / Sputnik - 28th July, 2021) The UK government announced on Wednesday the nationalization of Sheffield Forgemasters International Limited (SFIL), amid concern that the steel company's failure could hit the supply of components for the Ministry of Defense' nuclear submarines and other critical programs.
The immediate cost of the acquisition is 2.6 billion ($3.6 billion) for the entire share capital of the firm plus debt, and the Ministry of Defense is planning to invest another 400 ($553 million) over the next 10 years to replace old machinery and build new assets.
"The acquisition has been assessed as the best value for money for the tax payer due to the unique capabilities and circumstances," the government said in a statement, adding that SFIL is the only available manufacturer with the skills and capability to produce large scale high-integrity castings and forgings from specialist steels to the highest standards required for the defense programs.
Under the deal, the firm's corporate structure will remain intact, although 100% ownership will pass to the UK Ministry of Defense.
Sheffield Forgemasters, which dates back to the 1750s, has been crippled by financial problems in recent years.
