Sheffield Forgemasters’ Recapitalisation Plan Increased to £1.3 Billion to Boost UK Defence Manufacturing Capacity

Sheffield Forgemasters, owned by the Ministry of Defence (MoD), has announced a significant increase in its recapitalisation budget from £900 million to £1.3 billion. This expanded investment is aimed at enhancing UK manufacturing capacity to meet rising defence demands and reinforce the nation’s sovereign industrial capabilities.

The scale-up comes in response to the Government’s increased defence spending, which has put additional pressure on Sheffield Forgemasters’ infrastructure to deliver unique, high-value components faster and with greater resilience. The company plays a crucial role in supporting the UK’s nuclear submarine and warhead programmes, collaborating with major defence partners including BAE Systems, Rolls-Royce Submarines Ltd, Babcock International, and the Atomic Weapons Establishment.

Gary Nutter, CEO of Sheffield Forgemasters, explained:

“When the company was acquired by the MoD in 2021, our recapitalisation programme was just beginning as we sought to upgrade legacy equipment dating back to the 1960s and 1970s. Initially, we planned to retrofit existing buildings, but as defence output targets increased, we realised space constraints required us to expand. We have since acquired 21 acres of predominantly brownfield land to build a dedicated, modern machining facility.”

The company’s capacity plans have grown to include 15 of the world’s most advanced large vertical turning lathes, along with upgraded furnaces, quench tanks, and cranes in the forging line. These enhancements are critical to delivering defence submarine components at an accelerated pace, supporting the UK’s strategic programmes.

Nutter added:

“Our workforce has grown from 600 to over 720 employees, with apprenticeships averaging 25 to 30 new entrants annually. Construction activities now employ more than 900 people, and over 35% of procurement spend has been within Yorkshire. This recapitalisation is driving a business-wide transformation that delivers operational excellence and significant productivity gains, ensuring we meet our customers’ demands with excellence and punctuality.”

The company’s new Forge and Machine Shop facilities are expected to be fully operational by the end of the decade. These advanced sites will dramatically increase efficiency and precision for some of the world’s most complex cast and forged products.

Nutter concluded:

“This investment story is extraordinary—not only for Sheffield but for the entire UK. We are creating a lasting legacy that protects hundreds of highly skilled engineering jobs and ensures critical defence capabilities for decades. With foundation work nearly complete on our new Forging Line and piling soon to start on the Machine Shop, Sheffield Forgemasters is firmly positioned at the heart of UK defence manufacturing and security.”