Sheffield Forgemasters

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Sheffield Forgemasters
Company type Limited company
Industry Engineering
Founded1805
Headquarters Sheffield, England, UK
Key people
Gary Nutter (CEO)
Amy Grey (CFO)
Gareth Barker (COO)
Products Steel forgings
Steel castings
Consultancy
R&D
ServicesSteel Casting and Forgings
Owner UK Government Investments
Parent Ministry of Defence
Website www.sheffieldforgemasters.com
Electric arc furnaces steel mill at the Sheffield Forgemaster complex in Brightside. The furnaces are contained in the building at the rear. The tall buildings at the front filter the dust and gases from the furnaces. Electric arc furnaces - geograph.org.uk - 517378.jpg
Electric arc furnaces steel mill at the Sheffield Forgemaster complex in Brightside. The furnaces are contained in the building at the rear. The tall buildings at the front filter the dust and gases from the furnaces.

Sheffield Forgemasters is a British heavy engineering firm that is based in Sheffield, South Yorkshire, England. The state-owned company specialises in the production of large bespoke steel castings and forgings, as well as standard rolls, ingots and bars. The company was nationalised in July 2021, becoming wholly owned by the UK's Ministry of Defence.

Contents

History

Origins and early years

Sheffield Forgemasters traces its origins to a 1750s blacksmith forge, and then Naylor Vickers and Co. founded by George Naylor and Edward Vickers, [1] the predecessor of Vickers Limited.[ citation needed ] Vickers built the River Don Works in 1865. [2] In 1983, the River Don Works, then part of state-owned British Steel, merged with Firth Brown Steels to create Sheffield Forgemasters. [3]

During the 1980s, Forgemasters was one of several British companies that manufactured components destined for the Iraqi Project Babylon "supergun", which it had believed were for a petrochemical refinery. The resulting government investigation exonerated the company's directors of wrongdoing; [4] the incident became known as the Supergun affair.

In mid-1997, Forgemasters announced a plan to demerging its aerospace and engineering divisions into two separate companies; this move was stated to be in preparation for their flotation. [5] During the following year, the company was not only divided but sold to two separate American companies. Allegheny Teledyne acquired the aerospace business, [6] while Atchison Casting Corp bought the River Don and Rolls businesses; it was the latter that retained the Sheffield Forgemasters name. [3] Over the following four yeara, Atchison invested $64 million (£39 million) in improving the firm's technology and equipment. [4]

During 1999, the firm started to supply rolled steel to the Russian steel company Severstal; by the mid-2010s, Forgemasters was reportedly supplying three-quarters of Severstal's demand for this product. [7] [8]

2000s–2010s

During 2002, amid poor economic conditions, Forgemasters was reportedly to be approaching liquidation. [4] One year later, American parent company Atchison went bankrupt, leading to its acquisition by the investment firm KPS later that same year. [9] During 2005, Graham Honeyman led a successful effort to buy Forgemasters, after which Honeyman became the company's chief executive [10] as well as its majority shareholder. [11]

Amid severe flooding in the summer of 2007, Forgemasters experienced a work stoppage after its works were inundated by the River Don. Three weeks after the event, repairs were ahead of schedule and the works were approaching full production. [12] [13]

In the late 2000s, Forgemasters launched an effort to acquire a 15,000 tonne forging press for manufacturing ultra-large civil nuclear components. By March 2010, the company had secured £140 million in funding over two years, [14] which included an £80 million loan from the British government. Plans to acquire the press were ultimately suspended. The government loan was cancelled in June 2010 with a change of government. [15] [16] One year later, Forgemasters declined to apply for a new loan as foreign competitors were already building such presses while the Fukushima Daiichi nuclear disaster had caused uncertainty in the civil nuclear market. [17]

Throughout the 2010s, Forgemasters was involved in numerous maritime projects. In May 2014, the firm joined the Wales Tidal Industry Advisory Group, which sought to realise the commercial benefits of the proposed Swansea Bay Tidal Lagoon. [18] In mid 2017, Vulcan SFM (Forgemasters' offshore division) was awarded a £5.5 million contract by Samsung Heavy Industries to produce 73 steel castings for a semi-submersible oil platform. [19] Furthermore, Forgemasters produced components, such as subsea emergency repair clamp bodies, for use on Nord Stream 1, the world’s longest subsea gas pipeline. [20] [21]

Financial difficulties and nationalisation

Along with the decline of the wider British steel industry throughout the 2010s, Forgemasters was no exception to this trend. The firm reported its first operating loss, of £9.4 million, since separating from Atchison in the 14 months leading to December 2014. During January 2016, the company announced plans to reduce its workforce from 800 to 700. [22] The company's financial health attracted attention due to its involvement in Britain's nuclear submarine programme. [11] [23]

During 2016, Forgemasters obtained a £30 million loan from the American bank Wells Fargo. The loan was underwritten by nuclear submarine contractors BAE Systems, Babcock International and Rolls-Royce Marine Power, in an arrangement negotiated by the British Ministry of Defence (MoD); the intervention forestalled Chinese investment and control in the company. In March 2018, the arrangement was due to expire in July 2019; Sky News reported that the underwriters were seeking a replacement to Honeyman, possibly as a precondition for renewal. [11] In July 2018, Honeyman was replaced as Forgemasters' chief executive by David Bond, formerly of BAE Systems. [10]

In December 2020, Britain's Ministry of Defence (MoD) and Forgemasters were in preliminary talks for the nationalisation of the company. [23] In July 2021, the UK government announced that the MoD had launched an offer to take over the company for £2.56 million, and intended to invest a further £400 million over the next decade to support defence outputs. Investment was to reportedly include a new heavy forge line and flood alleviation measures. The existing senior management continued to run the company alongside two new non-executive directors. [24] [25] [26] At the time, the long term intention of the British government was to eventually privatise Forgemasters; no timeframe has been specified for this. [27]

Recent activities

During March 2022, the British government instructed Forgemasters to end its supply contract with the Russian energy firm Gazprom as a result of the Russian invasion of Ukraine. The company had already stopped any sales business with Russia by that date. [28] [29] Later that same year, Forgemasters commenced the fabrication of an at-scale fusion vessel trial ring for a demonstration machine for General Fusion. [30]

In July 2024, the MOD announced that it would revived the ability to produce forgings for large caliber gun barrels in collaboration with Sheffield Forgemasters. [31] [32] In a separate announcement, the MoD revealed an arrangement with Forgemasters to repair Ukrainian vehicles. [33] That same month, newly-installed Secretary for Defence John Healey toured the Forgemasters plant with his Australian counterpart Richard Marles in the framework of the AUKUS partnership. [34] In January 2025, the British government awarded a contract to the defence firm BAE Systems to produce artillery barrels for Ukraine; BAE has stated their intention to work with Sheffield Forgemasters to produce the barrel forgings. [35] [36]

Capabilities

The company specialises in forged and cast steel components for the defence, engineering, nuclear, offshore, petrochemical and steel processing industries worldwide.

The company received the American Society of Mechanical Engineers N-stamp accreditation for critical nuclear components in 1992, having produced major components for the Astute-class submarines and the civil nuclear industry, including Sizewell B, the UK's only pressurised water reactor. [37] [38] The accreditation lapsed some years later, with the lack of nuclear work. In 2023, the company was reportedly working to regain ASME status for heavy forgings and castings to the civil nuclear market and to position itself for anticipated expansion of civil nuclear capacity in the UK. [39] During mid 2020s, Forgemasters started using a new electron beam-based welding process that reduced the timescale involved in the construction of compact nuclear reactors from 150 days to two hours. [40] [41]

Sheffield Forgemasters currently has the capacity for pouring the largest single casting (570 tonnes) in Europe. The two forging presses in use can exert a pressure of 4,500 tonnes and 10,000 tonnes on a billet of steel. The 4,500 tonne press was installed in 2010 to replace a 1,500 tonne press which dated back to 1897 and was originally steam powered, and after several upgrades became hydraulically operated.[ citation needed ]

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References

  1. ↑ "About Us". Sheffield Forgemasters. Retrieved 1 April 2021.
  2. ↑ "History: 19th century". Sheffield Forgemasters. Archived from the original on 11 May 2016. Retrieved 1 April 2021.
  3. 1 2 "History: 20th century". Sheffield Forgemasters. Archived from the original on 11 May 2016. Retrieved 1 April 2021.
  4. 1 2 3 Tomlinson, Heather (5 January 2003). "You're Fired!". The Independent . Retrieved 1 April 2021.
  5. ↑ Yates, Andrew (13 January 1998). "Two US companies target Sheffield Forgemasters". The Independent.
  6. ↑ "Allegheny Teledyne Incorporated". Securities and Exchange Commission. 1999.
  7. ↑ "Contract wins with Russian giant continue to roll for Forgemasters". thebusinessdesk.com. 22 January 2013.
  8. ↑ Patel, Karishma (24 August 2016). "Multimillion-pound contract wins for Sheffield Forgemasters". insidermedia.com.
  9. ↑ "Atchison's Foundry Sell-Off Complete". Foundry Management & Technology. 22 December 2003. Retrieved 1 April 2021.
  10. 1 2 "New CEO in Place at Sheffield Forgemasters". Forging. 31 July 2018. Retrieved 1 April 2021.
  11. 1 2 3 Kleinman, Mark (17 March 2018). "UK industrial giants push for Sheffield Forgemasters overhaul". Sky News. Retrieved 17 March 2018.
  12. ↑ "Forgemasters back with 'never again' warning". Sheffield Telegraph . 14 February 2012. Archived from the original on 14 February 2012.
  13. ↑ "A decade after the deluge, £20m floods scheme opens in Sheffield". yorkshirepost.co.uk. 25 January 2018.
  14. ↑ "Forgemasters place UK at forefront of nuclear power manufacturing". Sheffield Forgemasters. 17 March 2010. Archived from the original on 23 March 2010. Retrieved 1 April 2021.
  15. ↑ "Sheffield Forgemasters' £80m nuclear parts loan axed". BBC News. 17 June 2010. Retrieved 1 April 2021.
  16. ↑ "Government cancels Forgemasters' nuclear press loan". theengineer.co.uk. 17 June 2010.
  17. ↑ "Forgemasters to put on hold nuclear plans". The Yorkshire Post. 21 April 2011. Retrieved 1 April 2021.
  18. ↑ "UK Industry Works to Maximise Tidal Lagoon Potential". offshore-energy.biz. 12 May 2014.
  19. ↑ "Sheffield Forgemasters awarded £5.5m for offshore steel castings". theengineer.co.uk. 4 July 2017.
  20. ↑ "Sheffield Forgemasters Delivers Nord Stream Pipeline Clamps". offshore-energy.biz. 16 June 2016.
  21. ↑ Williamson, Jonny (15 June 2016). "Another world record for Sheffield Forgemasters". themanufacturer.com.
  22. ↑ "Sheffield Forgemasters to cut up to 100 jobs as steel industry decline continues". The Guardian. 19 January 2016. Retrieved 20 January 2016.
  23. 1 2 Kleinman, Mark (6 December 2020). "Defence chiefs plot move to take control of nuclear sub steelmaker". Sky News. Retrieved 1 April 2021.
  24. ↑ "UK Government to acquire Sheffield Forgemasters International Limited". GOV.UK. Retrieved 28 July 2021.
  25. ↑ "UK Defence Ministry takes over Sheffield Forgemasters". Nuclear Engineering International. 29 July 2021. Retrieved 30 July 2021.
  26. ↑ Jolly, Jasper (28 July 2021). "Sheffield Forgemasters nationalised after £2.6m takeover by MoD". The Guardian. Retrieved 20 July 2024.
  27. ↑ "Lessons learned: Monitoring and responding to companies in distress" (PDF). National Audit Office. 27 October 2023.
  28. ↑ Kollewe, Julia (13 March 2022). "Defence firm Sheffield Forgemasters told to end contract with Gazprom". The Guardian. Retrieved 20 July 2024.
  29. ↑ Cahill, Helen (12 March 2022). "Nuclear submarine supplier ordered to axe contract with Gazprom". The Telegraph.
  30. ↑ "Sheffield Forgemasters plays pivotal role to advance fusion energy development". machinery.co.uk. 3 November 2022.
  31. ↑ Allison, George (21 July 2024). "Britain rebuilding ability to manufacture large-calibre guns". ukdefencejournal.org.uk.
  32. ↑ Andrews, Danielle (23 October 2024). "Sheffield Forgemasters to produce steel for first domestic artillery factory in decade". yorkshirepost.co.uk.
  33. ↑ "Zelensky meets UK arms industry to secure support for Ukraine". Perspective Magazine. 18 July 2024. Retrieved 20 July 2024.
  34. ↑ Salerno-Garthwaite, Andrew (17 July 2024). "UK reaffirms AUKUS partnership at Sheffield Forgemasters" . Retrieved 20 July 2024.
  35. ↑ Cumber, Robert (18 January 2025). "Sheffield Forgemasters: £61m contract for BAE Systems to make artillery barrels in Sheffield for Ukraine". thestar.co.uk.
  36. ↑ "UK Contracts Arms Makers to Make Artillery Barrels for Ukraine". Kyiv Post. 24 January 2025.
  37. ↑ "Forgemasters to pump up capabilities?". World Nuclear News. 3 September 2008. Retrieved 24 June 2010.
  38. ↑ Nathan, Stuart (22 October 2013). "Power struggle: developing the UK's nuclear manufacturing capacity". The Engineer. Retrieved 12 March 2016.
  39. ↑ "Sheffield Forgemasters set to regain key nuclear accreditation". World Nuclear News. 11 December 2023. Retrieved 12 December 2023.
  40. ↑ "Sheffield Forgemasters leads $14M project to industrialize electron beam welding for nuclear reactors; SMR application". greencarcongress.com. 16 December 2019.
  41. ↑ Powell, Emma (12 February 2024). "Welding method drastically cuts time to make mini nuclear reactors". The Times.
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