UK government intervenes to acquire steel components manufacturer
The nuclear reactor on RN Astute-class submarines includes steel components from Sheffield Forgemasters. (Photo: UK MoD/Crown Copyright)
Decision to nationalise Sheffield Forgemasters is a move to protect a strategically important industrial capability.
The UK government is to nationalise a company that makes key components for nuclear submarine reactors.
Under a £2.56 million ($3.55 million) offer to acquire Sheffield Forgemasters International Limited (SFIL) from the MoD, the government will refinance the company ‘and secure the supply of components for the MoD’s critical existing and future UK defence programmes’, it announced on 28 July.
SFIL will also receive up to £400 million in defence-critical plant, equipment and infrastructure investment from the MoD over the next 10 years to support defence programmes.
SFIL produces cast and forged steel components for the UK RN Astute-class submarine programme.
The MoD justified the move to acquire SFIL by arguing that the Sheffield firm is the only available manufacturer ‘with the skills and capability to produce large scale high-integrity castings and forgings from specialist steels in an integrated facility to the highest standards required for these programmes’.
You may also like
More from Defence Notes
-
![US lawmakers warn that “more military spending is absolutely necessary” to ensure Pentagon’s readiness]()
US lawmakers warn that “more military spending is absolutely necessary” to ensure Pentagon’s readiness
The US Congress has raised concerns about how inflation rates and cuts in main acquisition programmes could affect the US military.
-
![Can the US overcome Russian and Chinese nuclear capabilities?]()
Can the US overcome Russian and Chinese nuclear capabilities?
Washington’s ageing inventory and the pace Moscow and Beijing have been modernising their capabilities put in check the US Nuclear deterrence.
-
![US FY2024 funding package passes as China closes military capability gap]()
US FY2024 funding package passes as China closes military capability gap
The Pentagon has been operating under temporary funding since October 2023, which has impacted its main acquisition and development programmes, increasing the capability gap between the US and China.
-
![NATO outlines future challenges as Ukrainian funding from US stalls]()
NATO outlines future challenges as Ukrainian funding from US stalls
In 2023, defence spending increased by an unprecedented 11% across European NATO countries and Canada. Since 2014, the group has spent an additional US$600 billion on defence.
-
![US Pentagon to reduce investments in main acquisition programmes over FY2025]()
US Pentagon to reduce investments in main acquisition programmes over FY2025
The DoD requested nearly US$850 billion to fund operations over the next fiscal year. Despite the amount being 1% higher than the FY2024 budget request, it has not covered the 3% inflation rate, which could impact the DoD’s main programmes in the medium and long term.
