Sheffield Forgemasters signs $30m US navy submarine deal
Engineering giants Sheffield Forgemasters has secured a series of export defence contracts worth more than $30m.
The South Yorkshire firm will provide a sequence of castings for the US OHIO submarine replacement programme.
The deal builds on Sheffield Forgemasters many years’ experience of supply into the British defence industry.
No further information has been released about the order specifics, but the contracts will provide a much needed body of work for the company, which has been under economic pressure after the collapse of the offshore oil and gas market and in the wake of a global economic downturn.
Dr Graham Honeyman, chief executive at Sheffield Forgemasters International Ltd, said: “These orders provide a boost for our Brightside Lane operations as we work towards our business turnaround plan.
“Work has already started on these orders and the first parts will complete in 2016 with another tranche of components anticipated to follow in 2017, providing work for our Melt Shop, Foundry and Machine Shops. These are complex components and require detailed modelling and manufacturing to highly specific tolerances.”
The project has been granted full approval by the UK Government.
Dr Honeyman added: “One of the company aims is to broaden our market reach for defence contracts, which we have unparalleled experience in servicing.
“We hope to build on the success of these orders as our teams search out greater opportunities for product diversification and services in a challenging global market.”
The orders mark one of Forgemasters’ largest business wins for almost two years and follow a January announcement for a £1m US contract for Ajax-Ceco press components.
Dr Honeyman continued: “Our sales teams are currently working with customers on a variety of potential projects including those within the power generation, defence, civil nuclear, materials processing, offshore and tidal power industries. We are hopeful that there will be conversions for a number of these enquiries as we work through the next 12 months.
“We have confidence in the future of this business and we are fully committed to working through this transitionary period as we restructure and invest for greater efficiencies.
“Sheffield Forgemasters remains a world-leader in the delivery of the most challenging large-scale engineering projects and these orders are testament to the skills within these walls and the diligence of our sales team in the face of extremely tough competition.”