Chinese investors ‘in discussions’ to buy stake in Sheffield Forgemasters
HEAVY engineering firm Sheffield Forgemasters has confirmed it is seeking investment, but rejected claims of a Chinese-backed rescue deal.
Weekend reports portrayed the historic South Yorkshire company as being the latest potential casualty of the crisis gripping the UK’s steel industry.
Sheffield Forgemasters insisted it is “business as usual” as it confirmed it has been seeking investment to fund its long-term strategy.
“Despite challenging trading conditions, which have affected the industry worldwide, the company remains financially stable and continues to win notable orders in defence, power generation, manufacturing and offshore sectors,” said chief executive Graham Honeyman.
“We can confirm that we have been in discussions with a view to developing and securing new and material business and potential external investment in the company as part of a long-term business development strategy.
“The terms of such discussions are confidential but updates will be given if and when they become conclusive.”
The company can trace its roots back to 1805 and manufactures steel forgings and castings. It also manufactures parts for Britain’s Trident nuclear submarines, and is only one of a handful of companies in the world capable of making large enough forgings for defence, nuclear and oil and gas platforms.
Anxiety has been mounting across the UK steel industry after Tata Steel announced that 1,200 job cuts would be made across its Scunthorpe and Scotland sites, and SSI shut its Redcar steelworks last month.
At the same time the government, led by Chancellor George Osborne, has been encouraging significant Chinese investment in the UK. Recent announcements include Scarborough Group’s developments at Thorpe Park and Sheffield Digital Campus as well as the financing of the Hinkley Point nuclear power station.
Sheffield Forgemasters has traded in China for more than 30 years and Mr Honeyman has previously said the country has “an immensely important role” for the company. It welcomed a nine-strong delegation this summer from Chinese industrial and academic organisations.
