Sheffield Forgemasters

Sheffield Forgemasters is a heavy engineering firm located in Sheffield, South Yorkshire, England. The company specialises in the production of large bespoke steel castings and forgings, as well as standard rolls, ingots and bars.

This article is about the heavy engineering firm. It is not to be confused with Forgemasters (band).

Sheffield Forgemasters
TypeLimited company
IndustryEngineering
Founded1805
Headquarters
Sheffield
,
England
Key people
David Bond (CEO)
Steve Hammel (CFO)
Paul Cahill (COO)
ProductsSteel forgings
Steel castings
Consultancy
R&D
ServicesSteel Casting and Forgings
Websitewww.sheffieldforgemasters.com

History

The history of the business can be traced back to the 1750s as a small blacksmiths forge and in 1805 George Naylor[1] set up the first commercial steel works at the Millsands Works. In 1829 George Naylor joined forces with his son in law Edward Vickers[2] and established Naylor Vickers & Co.[3] The Vickers name had a long and illustrious history in engineering until the resulting company, Vickers Ltd.,[4] was acquired by Rolls Royce in 1999.

Sheffield Forgemasters was first established under this name in 1983 from the merger of Firth Brown and British Steel Corporation's River Don Works forging operations, as a public company. The company can trace its heritage back to the start of the steel industry in Sheffield in the early 19th century. The firms of Vickers,[5] Cammell Laird,[6] and Armstrong Whitworth[7] were all nationalised to form British Steel[8] in the 1960s.

Sheffield Forgemasters was later acquired by Atchison Casting Corp.. Atchison went into administration in 2003 which left Sheffield Forgemasters in a predicament. Graham Honeyman managed to ring fence certain areas of the business and successfully carried out a management buy out to save the company. Since then Sheffield Forgemasters has remained the largest independent forgemasters in the world.

In 2016 Forgemasters obtained a £30 million loan from US bank Wells Fargo, underwritten by UK's nuclear submarine programme contractors BAE Systems, Babcock International and Rolls-Royce, in view of Forgemasters' vital role in the nuclear submarine programme. The underwriting arrangements are due to expire in July 2019.[9]

Capabilities

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

The company has the American Society of Mechanical Engineers N-stamp accreditation for critical nuclear components, having produced major components for the Astute class submarines and the civil nuclear industry, including Sizewell B, the UK's only pressurised water reactor.[10][11]

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.

2007 Sheffield floods

The company was severely affected by the 2007 United Kingdom floods, when the nearby River Don flooded the works with several feet of water, but after a cleanup effort Forgemasters was back in action within weeks of the devastation.[12]

As a result of the 2007 floods Sheffield Forgemasters have installed extensive flood defences around the site which has since prevented the River Don breaching the banks into the site and onto Brightside Lane.

2010 expansion
Gate 1 at Forgemasters

Due to increasing demand for their specialist services, in 2010 the firm commissioned a new 4,500 ton forging press, with plans to increase the range of forgings they can supply.[13]

On 17 March 2010, Lord Mandelson announced that the UK Government would loan the company £80 million at a low 3.5% interest rate towards the design and building of a new 15,000 ton forging press (together with other investors).[14][15][16] The press, intended to give Sheffield Forgemasters the ability to manufacture ultra-large forgings for the nuclear power industry, would allow the UK to use home-manufactured components during the building of proposed new nuclear power plants in the country. According to The Engineer, as of 2010, there was only one other manufacturer in the world, Japan Steel Works, with the adequate presses and certification able to manufacture all the required ultra-large forgings,[17] however the World Nuclear Association stated that very heavy forging capacity was also operating in China and Russia, and was under construction in France and South Korea.[18]

Following the 2010 United Kingdom general election, held on 6 May, the new Government announced a Treasury review of all Government decisions on funding since 1 January,[19] aimed at reducing the country's budget deficit in response to the preceding financial crisis and concerns over sovereign debt, which led to a period of uncertainty about the expansion's future.[20] On 17 June 2010 Chief Secretary to the Treasury Danny Alexander announced the cancellation of 12 projects totalling £2 billion agreed to by the previous Labour government,[21][22] including the £80 million loan to Sheffield Forgemasters.[23][24] The Secretary of State for Business, Innovation and Skills Vince Cable explained the reason was that the project required very large loans and promised extraordinary rates of return with little risk investment by Sheffield Forgemasters, and given the financial situation the government could not support this.[25] Sheffield Forgemasters' chief executive stated that the project was not economic using private finance, and was unlikely to go ahead without government loans.[26]

In an interview with BBC Radio Sheffield, Deputy Prime Minister Nick Clegg said the Government might reconsider loaning the company money for expansion.[27] However, in 2011, following the Fukushima Daiichi nuclear disaster, the company decided to no longer try to finance a 15,000 ton forging press due to uncertainty about the future of nuclear energy.[28] On 31 October 2011 the UK Government announced new lending of up to £36m to the firm, as part of £950m of investment nationwide from the Regional Growth Fund for a variety of equipment in areas like the melt shop, forge and the machine shops.[29][30]

References
  1. "George Naylor - Graces Guide". www.gracesguide.co.uk. Retrieved 16 September 2020.
  2. "Edward Vickers - Graces Guide". www.gracesguide.co.uk. Retrieved 16 September 2020.
  3. "Naylor, Vickers and Co - Graces Guide". www.gracesguide.co.uk. Retrieved 16 September 2020.
  4. "Vickers - Graces Guide". www.gracesguide.co.uk. Retrieved 16 September 2020.
  5. "Vickers - Graces Guide". www.gracesguide.co.uk. Retrieved 16 September 2020.
  6. "Cammell, Laird and Co - Graces Guide". www.gracesguide.co.uk. Retrieved 16 September 2020.
  7. "Armstrong Whitworth - Graces Guide". www.gracesguide.co.uk. Retrieved 16 September 2020.
  8. "British Steel - Graces Guide". www.gracesguide.co.uk. Retrieved 16 September 2020.
  9. Kleinman, Mark (17 March 2018). "UK industrial giants push for Sheffield Forgemasters overhaul". Sky News. Retrieved 17 March 2018.
  10. "Forgemasters to pump up capabilities?". World Nuclear News. 3 September 2008. Retrieved 24 June 2010.
  11. Stuart Nathan (22 October 2013). "Power struggle: developing the UK's nuclear manufacturing capacity". The Engineer. Retrieved 12 March 2016.
  12. "Forgemasters back with 'never again' warning". Sheffield Telegraph. 14 February 2012. Archived from the original on 14 February 2012.
  13. Sheffield Forgemasters invests £6m as demand soars Sheffield Telegraph
  14. Forgemasters place UK at forefront of nuclear power manufacturing Sheffield Forgemasters International
  15. Sheffield Forgemasters gets £80m state loan to make parts for nuclear industry The Daily Telegraph
  16. Angela Smith (23 June 2010). "Budget Resolutions And Economic Situation". Hansard. House of Commons. HC Deb, 23 June 2010, 4:37 pm, c360. The loan would have earned a 3.5% interest rate, and would have involved Westinghouse taking a stake in the company and giving a guarantee of forward orders.
  17. Sheffield Forgemasters' nuclear ambition, Jon Excell, The Engineer, 28 April 2010
  18. "Heavy Manufacturing of Power Plants". World Nuclear Association. 18 March 2010. Archived from the original on 1 April 2010.
  19. City's anxious wait for where axe falls Sheffield Telegraph
  20. MP demands swift Government decision over Forgemasters money Sheffield Telegraph
  21. Coalition government axes £2bn of projects BBC News
  22. Transport and health projects halted as Government backs down on £10bn commitments The Daily Telegraph
  23. Sheffield Forgemasters' £80m nuclear parts loan axed BBC News
  24. Government axes Labour's 'breathtakingly cynical' £80m loan to Sheffield Forgemasters Yorkshire Post
  25. Vince Cable (23 June 2010). "Budget Resolutions And Economic Situation". Hansard. House of Commons. HC Deb, 23 June 2010, 1.14 pm, c310. What was a very highly geared project promised extraordinary rates of return to the private promoter. We looked carefully at all the evidence, and the project clearly had positive aspects, but we decided that in the circumstances of a Government with highly constrained public finances, we could not support it.
  26. "We won't give up yet, vows Forgemasters". Yorkshire Post. 17 June 2010. Retrieved 4 February 2013. Private equity would take the whole of the shareholding away from Forgemasters and put it in the hands of somebody else... That's not just my shares (49 per cent) or the other directors, 65 per cent of the shop floor own the shares in the company. The amount of money to put in to fund the press would more or less have to absorb the whole of the shareholding. The reason why we went to the government is the interest rates were reasonable. Bank interest rates are very high therefore we would have to make huge profits every year in order just to pay off interest on the debt. This is why we needed support from the government."
  27. "Sheffield Forgemasters loan 'could be revisited' - Clegg". BBC News. 17 December 2010. Retrieved 17 December 2010.
  28. Elizabeth Rigby (20 April 2011). "Sheffield Forgemasters poised to shun funds". Financial Times. Retrieved 2 November 2011.
  29. Clegg visits Forgemasters plant The Press Association
  30. "Sheffield Forgemasters gets up to £36m from government". BBC. 31 October 2011. Retrieved 2 November 2011.
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