It has announced that it is "no longer considering any other locations".

The group had been keeping its options open for months while it waited on a decision on government grants to aid the massive project. The group has secured a Regional Selective Assistance grant, understood to be in the region of 3m, via Yorkshire Forward.

Although the plant will be equipped with the latest automated equipment it is still set to eventually employ 1,000 people, once both phases of the project are complete.

Chief executive Barry Hibbert said the location adjacent to the M1 and reputation of the local workforce "had a big impact on our decision making process".

Project director Mike Young thanked Sheffield City Council, Sheffield First for Investment and Yorkshire Forward for their "tremendous support".

Planning permission is yet to be granted for the development of the former Avesta steel rolling mills site, but the group is confident consent will be secured within a few weeks.

An existing railhead runs into the site, and it is also adjacent to the location of the proposed new Sheffield rail freight terminal.

Polestar's development partner Gazeley is committed to having the building ready by the end of November.

At Drupa Polestar accelerated its investment plans for the new gravure operation, ordering a third Cerutti gravure press and more Ferag finishing kit. See earlier story here.

See also Sheffield favourite for Polestar project.