Forgemasters’ loan cut has ‘far reaching implications’
THE Government’s announcement to withdraw an £80m loan to Sheffield Forgemasters International promised by the previous administration will have ‘far-reaching implications’, according to the Master Cutler.
James Newman, whose ceremonial role as head of the Company of Cutlers in Hallamshire includes opportunities to raise the profile of the region’s manufacturing industries, said that the news was “particularly disappointing” in light of the government’s stated commitment to manufacturing and exports.
He said: “Only two weeks ago David Cameron made a speech in Bradford declaring his support for manufacturing and the Yorkshire region. This was then reiterated by Vince Cable in Birmingham.
“As manufacturing accounts for 62% of the UK’s overseas trade it would seem that the perfect export opportunity has been stifled before it can begin.”
The loan was to be used to boost the firm’s expansion plans to build parts for nuclear power stations and could have created up to 180 jobs.
It would have positioned Forgemasters as one of just two companies in the world able to supply large forgings to the nuclear industry.
The news came as part of the government’s announcement that it was to axe £2bn of projects after a review of Labour’s spending decisions.
Mr Newman added: “Forgemasters is a highly successful and profitable company and what now needs to happen is that the government, local authority and industry should encourage private finance to support the company.
“Our faith in this region and optimism regarding its future may have taken a slight knock but we should not forget that we are still an area of manufacturing excellence and we should take every opportunity to remind our politicians of that fact.”
Graham Honeyman, chief executive of Sheffield Forgemasters, vowed to develop the company without the loan.
He said last week: “While the press would have placed the company at the forefront of civil nuclear manufacture, it is important for us now to focus on other elements of the company’s development.
“Sheffield Forgemasters will continue to develop its significant involvement into civil nuclear, thermal and hydro power generation markets and seek other ways to develop the business.”
