Ministers blocked Sheffield Forgemasters, the troubled steelmaker, from reaching a rescue deal with Chinese investors on national security grounds.
The company, which announced on Tuesday it was shedding up to 100 jobs, had been in talks with an unnamed Chinese state-owned group when it was informed before Christmas that the government would oppose the deal.
The Ministry of Defence, in particular, was against it because Sheffield Forgemasters makes parts for the submarines that carry the Trident nuclear missiles: its pressure cylinders surround the reactors on the vessels.
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