Statement made , Secretary of State for Defence
The Ministry of Defence (MOD) has acquired Sheffield Forgemasters
International Limited (SFIL), allowing HM Government to refinance
the company and secure the supply of components for critical
current and future UK defence programmes.
The MOD also intends to invest up to £400 million into SFIL over
the next 10 years for defence critical plant, equipment and
infrastructure to support defence outputs. The acquisition has
been assessed as the best value for money for the taxpayer due to
SFIL’s unique capabilities and circumstances. The immediate cost
of the acquisition is £2.56 million for the entire share capital
of the company, plus debt assumed.
SFIL is the only available manufacturer with the skills and
capability to produce certain large scale high-integrity castings
and forgings from specialist steels in an integrated facility to
the highest standards required for specific defence programmes.
SFIL’s ownership by the Government will not prevent other UK
based manufacturers bidding for MOD contracts, which will
continue to be run in an open and fair competition.
The MOD has already started working closely with the company to
implement best practice governance that will ensure appropriate
financial oversight to secure the company’s future success, with
the aim eventually to return the business to the private sector.
