Forgemasters: Sheffield steel firm makes loss after machinery breaks down

The Sheffield steel giant Forgemasters has plunged to a loss due to sanctions against Russia, high energy prices, inflation and ‘major machinery breakdown’.

The Brightside steelmaker lost  £4.8m on turnover of £99.4m according to accounts for the year to March 31 2023.

Amy Grey, chief financial officer, said: "Our annual results for the financial year 2023 reflect a challenging operating environment, post-pandemic, and the economic impact of the war in the Ukraine, affecting all manufacturing industries.”

Profits were also hit by "incidences of major machinery breakdown limiting the availability of key production assets," a report states.

It is the second year of losses, the firm lost £4.4m the year before.

The firm was acquired by the Ministry of Defence in 2021 and is part way through a £400m upgrade.

Sheffield Forgemasters makes forgings and castings for customers including the Royal Navy and oil and gas companies.

In a review in the accounts, chair Sir Tim Fraser said strong progress was being made on the upgrade, which includes a new £100m heavy forge line.

Orders had been placed for significant new machining capability, he added.

In April, the firm landed a multi-million pound order from an American rolling mill set to keep the 600-employee plant busy for a year.

The firm took on 24 apprentices this year. Forgemasters can produce castings of up to 350 tonnes and forgings of up to 200 tonnes. The MoD says it is a 'defence-critical asset'.