Forgemasters' order book hits Â£118m - a five-year high
Sheffield Forgemasters has reported a 2018 order book value of Â£118m, its highest in five years.
UK and US defence orders, materials processing and research and development projects orders have all powered a surge as the firm continues a turnaround following the 2015 oil and gas market crash which erased 30 per cent of its workload.
Forgemasters claims its policy of investment in technology and skills allows it to operate in a competitive worldwide market for large engineered components which have a high safety-critical requirement.
Dr Graham Honeyman, chief executive, said: “We are very pleased to report that our order book has breached the £100m mark for the first time in five years.
“This announcement follows a prolonged period of market austerity across all of our market sectors after the global recession started to take effect, which was further compounded by the collapse of oil and gas markets which closed off a key revenue stream almost overnight.
Sign up to our daily newsletter
“It is important to recognise that our customers see the high integrity of our products and our ability to create engineering solutions as invaluable against increasing competition from other, less experienced manufacturers and aggressive tiger economies.”
The company is also creating some of the first components for a new class of small modular reactors which may revolutionise the global civil nuclear power programme, working in partnership with EPRI (Electric Power Research Institute) of the USA.
Dr Honeyman added: “Despite the downturn in global markets, the company holds fast to the belief that we have to maintain a technological lead so our investment into new skills and technologies has gone on unabated. This is a crucial difference that sets this company apart and we are confident that we can outgun our fiercest competition in terms of product integrity and design innovation.
“The company still has a lot of work to do to.”