Sheffield Forgemasters, owned by the UK Ministry of Defence (MoD), will receive £1.3 billion in investment as part of an expanded recapitalisation programme aimed at boosting the nation’s defence manufacturing capabilities. This marks a significant increase from the original £900 million commitment.
The funding boost comes in response to increased UK defence spending and growing demand for the company’s specialised engineering output. Sheffield Forgemasters plays a key role in the UK’s sovereign defence manufacturing, supplying critical components for nuclear submarines and warhead programmes through BAE Systems, Rolls-Royce Submarines Ltd, Babcock International, and the Atomic Weapons Establishment.
Modernisation and Expansion Underway
Chief Executive Gary Nutter explained that the recapitalisation effort began after the MoD acquired the company in 2021. At the time, the company was still using equipment installed in the 1960s and 70s. The original plan was to fit new machinery into existing buildings. However, the need to scale up defence production led to the purchase of 21 acres of mostly brownfield land. This site will house a new, dedicated machining facility.
“To meet the growing targets for the UK submarine programme,” said Nutter, “we now require 15 of the world’s most advanced large vertical turning lathes and other support equipment. We’ve also reconfigured our new Forging Line to increase capacity with more furnaces, quench tanks, and cranes. This will allow us to deliver submarine components more quickly and reliably.”
Jobs, Skills, and Local Impact
The company’s workforce has already grown from 600 to over 720 employees. It also welcomes 25 to 30 apprentices each year. Construction activity on the site now supports more than 900 workers, with over 35% of spending taking place in the Yorkshire region.
Nutter said the recapitalisation is not only upgrading equipment but also transforming the wider business. “It’s helping us improve productivity and operational performance. This supports our core goal—to deliver high-quality products on time to our major defence customers,” he said.
Looking Ahead
The new Forge and Machine Shop are expected to be operational by the end of the decade. Once complete, these facilities will dramatically boost the company’s efficiency and ability to produce some of the world’s most complex forged and cast components.
Nutter called the level of investment “an incredible story for Sheffield and for the UK.” He said the development will secure hundreds of high-skill engineering jobs for years to come. “We’re well underway on the new Forging Line, with foundation work nearly complete and steel structures due to rise by year-end. Preparations for piling have also started on the Machine Shop site.”
“This investment creates a lasting legacy—not just for the UK, but for our allies as well. It will be vital in supporting the defence of our country,” he added.
